The Regular meeting scheduled for 2020-08-11 at Remote

Transcript

The Regular meeting scheduled for 2020-08-11 at Remote

THIS IS COMMISSION PRESIDENT PETER STEINBRUECK RECONVENING THE REGULAR MEETING OF AUGUST 11Th 2020
THE TIME IS 12:03 P.M
WE'RE MEETING REMOTELY TODAY VIA SKYPE TO COMPLY WITH THE GOVERNOR'S SAFE START ORDER IN ACCORDANCE WITH PROCLAMATION 2028
PRESENT WITH ME TODAY ARE COMMISSIONERS BOWMAN, CALKINS, CHO, AND FELLEMAN
I WILL ALSO DO A ROLL CALL OF ALL COMMISSIONERS TO ENSURE EVERYONE IS ON THE LINE
CLERK? YES, COMMISSIONER BOWMAN
PRESENT
COMMISSIONER CALKINS
HERE
COMMISSIONER CHO
PRESENT
AND COMMISSIONER FELLEMAN
COMMISSIONER FELLEMAN? I SAW HIM EARLIER
I KNOW HE'S HERE
ALRIGHT
I CAN SEE COMMISSIONER FELLEMAN
LET'S MAKE SURE WE CAN GET SOME AUDIO
I'M GOING TO MUTE YOU AND THEN SEND A NEW PROMPT AGAIN
SO GIVE ME A MOMENT
WE STILL CAN'T HEAR YOU
OKAY
WE HOPE THAT WILL GET WORKED OUT MOMENTARILY
I'M GOING TO PROCEED WITH THE MEETING'S AGENDA HERE
TODAY'S MEETING IS STRUCTURED FOR OUR VIRTUAL FORMAT
WE HAVE MADE ARRANGEMENTS TO PROVIDE REMOTE PARTICIPATION FOR ALL OUR STAFF AND COMMISSIONERS
LATER WE'LL BE TAKING PUBLIC COMMENT FROM PEOPLE WHO ARE PARTICIPATING BY SKYPE AND WHO HAVE SIGNED UP TO SPEAK
ALSO, PLEASE NOTE THAT ALL VOTES WILL BE TAKEN BY ROLL CALL METHOD SINCE ALL COMMISSIONERS ARE PARTICIPATING REMOTELY
THAT MEANS FOR EACH VOTE THE CLERK WILL CALL EACH COMMISSIONER'S NAME
COMMISSIONERS ON THE SKYPE CALL WILL HAVE TO UNMUTE THEMSELVES AND THEN ANSWER YAY OR NAY OR YES OR NO DEPENDING ON YOUR PREFERENCE
BECAUSE COMMISSIONERS ON THE LINE ARE NOT FULLY IN CONTROL OF THEIR SOUND WE WILL TAKE ALL VOTES TODAY IN THIS MANNER INCLUDING OUR CONSENT AGENDA
TO BE EQUITABLE, WE WILL ASK ALL COMMISSIONERS TO SPEAK IN TURN AND WAIT TO BE RECOGNIZED BEFORE SPEAKING AS MUCH AS POSSIBLE
WE BEGIN TODAY'S MEETING BY ACKNOWLEDGING THE INDIGENOUS PEOPLES OF THE DUWAMISH AND COASTAL SALISH WHO HAS STEWARDED THESE BEAUTIFUL LANDS AND WATER SINCE TIME IMMEMORIAL AND WE MUST COMMIT TO DOING THE SAME FOR THE PLANET FOR GENERATIONS TO COME
THIS MEETING IS BEING DIGITALLY RECORDED AND MAY BE VIEWED OR HEARD AT ANY TIME ON THE PORT'S WEBSITE AND MAYBE REBROADCAST BY KING COUNTY TELEVISION
PLEASE JOIN US FOR THE PLEDGE OF ALLEGIANCE
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
DO WE HAVE THE FLAG? MY COMPUTER IS SLOW TODAY
OKAY
WE'LL IMAGINE THE FLAG THERE AND WILL IMAGINE OURSELVES BEFORE IT
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE- THERE WE GO- WITH LIBERTY AND JUSTICE FOR ALL
THANK YOU
GOOD AFTERNOON
JUST A FEW ITEMS FROM ME TODAY LAST WEEK PUT THE PORT COMMISSION HELD ITS SECOND BUDGET RETREAT AND THAT WAS A PRODUCTIVE DISCUSSION ABOUT THE PORT'S NON-AVIATION FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND AND THE KING COUNTY PROPERTY TAX LEVY THAT FUNDS THOSE CRITICAL PROJECTS IN THE PLAN
WE ALSO HEARD FROM ALASKA AIRLINES CEO BRAD TILDEN ABOUT THE IMPACTS ON ALASKA AIRLINES AND THE AVIATION INDUSTRY GENERALLY AND THE EFFECTS UNDERWAY TO RESTORE TRAVELER CONFIDENCE WHEN IT COMES TO HEALTH AND SAFETY
THE PANDEMIC HAS HIT US HARD ON MANY FRONTS AND WE'RE SEEING THAT IN OUR BUDGET
AS WE SAID BEFORE WE HAVE A DIFFICULT TASK AHEAD OF US
WE MUST BE RESPONSIBLE STEWARD OF THE PORTS' ASSETS AND TAXPAYERS MONEY WHILE ALSO TRYING TO HELP DRIVE REGIONAL RECOVERY EFFORTS
TODAY WE'LL BE RECEIVING A BRIEFING ON OUR SECOND QUARTER 2020 FINANCIAL PERFORMANCE AS WELL AS A BRIEFING ON RECREATIONAL BOATING INCLUDING SHILSHOLE BAY, SALMON BAY, BELLE HARBOR, AND HARBOR ISLAND MARINA
TWO MORE ITEMS BEFORE WE MOVE ON
AS YOU KNOW, LAST YEAR THE COMMISSION CREATED THE SOUTH KING COUNTY FUND AND PLEDGED 10 MILLION DOLLARS FROM NOW UNTIL 2023 WITH 1 MILLION AVAILABLE IN 2020
GRANTS ARE NOW AVAILABLE TO SUPPORT COMMUNITIES MOST IMPACTED BY THE CURRENT ECONOMIC CRISIS DUE TO THE PANDEMIC THROUGH PROJECTS CONNECTED TO PORT RELATED INDUSTRIES
[INAUDIBLE] THIS FUND TO ADDRESS INEQUITIES IN OUR ECONOMY AND ENVIRONMENT AND AS YOU KNOW, IT IS THE VULNERABLE COMMUNITIES THAT GET HIT THE HARDEST WHEN THERE'S AN ECONOMIC DOWNTURN OR A CRISIS
SO WE HOPE MANY WILL APPLY FOR THESE FUNDS AND PUT TO GOOD USE
PLEASE SPREAD THE WORD AND APPLY FOR THE GRANTS IF YOU ARE ELIGIBLE
THE DEADLINE IS SEPTEMBER 30TH
ALSO WANT TO EXTEND MY CONGRATULATIONS TO DAWN HUNTER, A PORT EMPLOYEE WHO HAS RECENTLY BEEN PROMOTED AS THE DIRECTOR OF AVIATION MANAGEMENT LAST WEEK WHERE SHE WILL DRIVE DEVELOPMENT AT THE AIRPORT
WHERE DID MY OTHER COMMENTS GO? I'VE MISPLACED MY OTHER COMMENT
SO ANYWAY
CONGRATULATIONS TO DAWN HUNTER AND WILL NOW TURN TO
THERE WE GO
SHE WAS HIRED AT THE PORT IN 2017 TO BE THE SENIOR MANAGER OF AIRPORT DINING AND RETAIL WHERE SHE DID AN EXCELLENT JOB AND WE ALL EXTEND A HUGE CONGRATULATIONS TO DAWN
SHE'S JUST A GREAT RESOURCE AND A COMMITTED, DEDICATED EMPLOYEE AT THE PORT AND WE THANK HER VERY MUCH
AND SO WITH THAT WE'LL NOW MOVE TO ITEM NUMBER THREE, WHICH IS APPROVAL OF THE AGENDA
I BELIEVE THERE IS ONE ITEM THAT WE WILL CONSIDER TO HOLD
UNDER THE CONSENT AGENDA ITEM 6 E AND WE'LL GET TO THAT IN JUST A SECOND
CLERK, PLEASE UNMUTE THE COMMISSIONERS
COMMISSIONERS ONLINE, PLEASE UNMUTE YOURSELVES
WE'LL ASK COMMISSIONERS IF THEY HAVE ANY MOTIONS TO REARRANGE THE ORDERS OF THE DAY
AND IF YOU DO, I WILL ASK FOR A SECOND IF NEEDED
PLEASE RESPOND WHEN I CALL YOU
IF YOU HAVE NO CHANGES SAY NONE
THANK YOU
MR COMMISSION PRESIDENT
BEGINNING WITH COMMISSIONER BOWMAN FOR ANY CHANGES TO THE AGENDA
I DON'T HAVE ANY CHANGES TO THE AGENDA, BUT I'D ASKED FOR THE OPPORTUNITY TO ASK A COUPLE OF QUESTIONS ABOUT THE ITEMS ON THE UNANIMOUS CONSENT CALENDAR
I DON'T WANT TO PULL THEM OFF GIVEN WHAT ELSE WE HAVE ON THE AGENDA TODAY BUT IF I MIGHT JUST ASK QUESTIONS WHEN WE GET TO THAT AND STAFF TO GET BACK TO ME LATER
BUT I DID WANT TO PROVIDE VISIBILITY TO THE REST OF THE COMMISSIONERS ABOUT MY QUESTIONS
FAIR ENOUGH
COMMISSIONER CALKINS, CHANGES TO THE AGENDA TODAY? NO CHANGES
THANK YOU
COMMISSIONER CHO? YEAH, I THINK MAYBE COMMISSIONER FELLEMAN WAS GOING TO DO THIS, BUT I JUST WANTED TO POINT OUT THAT THERE'S BEEN SOME CONCERN EXPRESSED WITH REGARDS TO THE L3 HARRIS CONTRACT FOR PORTABLE NOISE MONITORING
I THINK THERE IS SOME QUESTIONS ABOUT THE DATA COLLECTION PERIOD AND WHATNOT AND SO I WOULD ASK THAT WE POSTPONE THIS ITEM TO ONE OF THE SEPTEMBER MEETINGS
WE'VE ALSO HAD A REQUEST DIRECTLY FROM CITY COUNCIL MEMBER OF SEA-TAC, PETER QUAN, TO HAULT THIS ITEM UNTIL THE NEXT REGULAR MEETING SO TO ALLOW MORE ADDITIONAL TIME FOR FOR COMMUNITY MEMBERS TO COMMENT
SO COMMISSIONER FELLEMAN, WOULD YOU LIKE TO MAKE A MOTION COMMISSIONER FELLEMAN? I THINK WE'RE STILL WORKING ON AUDIO
COMMISSIONER FELLEMAN I'M GOING MUTE YOU AND THEN UNMUTE AGAIN, SO GIVE ME A MOMENT
YOU SHOULD BE MUTED CURRENTLY
GOING TO SEND THE UNMUTE PROMPT
SHOULD POP UP
I CAN'T HEAR YOU
IS THE PROMPT POPPING UP ON YOUR DESKTOP? MR PRESIDENT STEINBREUCK, IF FOR SOME REASON WE CAN'T GET COMMISSIONER FELLEMAN, WE COULD HAVE COMMISSIONER CHO MAKE THAT MOTION
LET'S PROCEED AND GO BACK TO COMMISSIONER CHO
AND IF YOU WOULD LIKE TO MAKE A MOTION? YES, I WOULD LIKE TO
I WOULD LIKE TO MOTION TO TAKE ITEM 60 OFF THE UNANIMOUS CONSENT AND CONSIDER IT FOR A LATER DATE IN SEPTEMBER
SO LET'S BE MORE SPECIFIC
LET'S SEE, IF WE COULD, TO PROPOSE THAT COME BACK TO THE COMMISSION AT THE NEXT REGULAR MEETING IN SEPTEMBER WHICH I BELIEVE IS-- WHAT'S THE DATE FOR THE NEXT MEETING? THE EIGHTH? ALL RIGHT
IS THERE A SECOND? OKAY, I HEAR A MOTION AND A SECOND TO HOLD ITEM 6E TO SEPTEMBER 8 COMMISSION MEETING
ANY FURTHER COMMENT OR DISCUSSION? I HAVE INQUIRED AS TO WHETHER THERE WOULD BE ANY FINANCIAL IMPACTS ASSOCIATED WITH THE DELAY AND THE AUTHORIZATION OF THIS CONTRACT AND I HAVE BEEN INFORMED BY STAFF THAT THERE WOULD NOT BE ANY SIGNIFICANT FINANCIAL IMPACT OR OTHER CONSEQUENCES
SO I THINK IN THE PUBLIC INTEREST, THIS WOULD BE A REASONABLE REQUEST TO DELAY FURTHER THIS ACTION ON THIS ITEM
ANY OTHER COMMISSIONERS WISHING TO MAKE A COMMENT ON THIS ACTION ITEM? AS I'M SURE COMMISSIONER FELLEMAN WOULD LIKELY WANT TO SPEAK, COMMISSIONER FELLEMAN, COULD YOU TRY PRESSING STAR SIX ON YOUR DEVICE IF YOU USED YOUR DEVICE AS AUDIO TO CALL IN? MAYBE HE'LL NEED TO CALL IN WITH HIS CELL PHONE SO THAT WE DON'T DELAY THE MEETING
I THINK WHEN YOU DIAL INTO THE SKYPE MEETING THERE'S AN OPTION TO JOIN WITH A PHONE AS A DIAL IN AND SOMETIMES I THINK THAT HAS COMPLICATIONS
OKAY COMMISSION PRESIDENT STEINBREUCK, WOULD YOU LIKE TO TAKE A BRIEF RECESS SO WE CAN TRY TO GET COMMISSIONER FELLEMAN LIVE AND PARTICIPATING IN THIS MEETING OR DO YOU WANT TO CARRY FORWARD WITH A VOTE ON THIS MOTION ON THE FLOOR? THANK YOU FOR THAT SUGGESTION
WE CAN CERTAINLY TAKE A SHORT RECESS
LET'S SAY TWO MINUTES TO TRY TO GET THIS RESULT
THANK YOU
WE ARE AT EASE
OKAY, THANK YOU
YEAH
OKAY
LOOKS LIKE COMMISSIONER FELLEMAN JUST LEFT THE MEETING
SO HOPEFULLY WE WILL BE ABLE TO GET HIM BACK
AND WITH FULL AUDIO
CAN WE ALSO DO A CHECK FOR EXECUTIVE DIRECTOR METRUCK IF HE HAS AUDIO? YEAH, SO
AM I ABLE TO BE HEARD? YEAH, THAT SOUNDS LIKE MR FELLEMAN
ALL RIGHT, SO FINE
I'M USING MY PORT PHONE BUT IT IS QUITE ODD THAT BUT I GUESS I CAN'T GET ON VIDEO NOW OVER
HERE WE GO
SO YOU CAN'T SEE ME AT ALL? LET ME I CANNOT, NO, BUT YOUR ICON IS STILL THERE
IT SAYS START VIDEO
I MEAN I WAS JUST ON THE EXECUTIVE MEETING AND IT WAS FINE
I CAN SEE YOU NOW
BUT THERE'S ECHO
IT SOUNDS LIKE YOUR COMPUTER IS PICKING UP YOUR PHONE
YES
WHATEVER YOU JUST MUTED WAS THE WRONG ONE
TRY MUTING YOUR COMPUTER
ALL RIGHT
SO, THIS IS GOOD NOW
YEP, PERFECT
I CAN SEE YOU AND HEAR YOU AND THERE'S NO ECHO
COMMISSIONER FELLEMAN, FOR YOUR COMMENTS ON THIS ITEM? I WOULD VERY MUCH APPRECIATE AND SECOND COMMISSIONER CHO'S MOTION TO POSTPONE TILL OUR NEXT COMMISSION MEETING AT WHICH TIME WE CAN HAVE A FULLER CONVERSATION AND I I KNOW THAT THIS HAS BEEN AN ISSUE THAT'S BEEN ON THE COMMUNITY'S MIOND FOR MANY YEARS AND THE FACT THAT THE CONTRACT IS NOW UP FOR REVIEW AGAIN ALLOWS US TO AT LEAST HAVE A CONVERSATION ABOUT WHAT IS POSSIBLE AND WHAT, IF ANY, FINANCIAL IMPLICATIONS THAT HAS
SO IT SHOULDN'T BE ON CONSENT
AND THIS WILL GIVE SETH TIME TO MAKE A FULLER PRESENTATION TO US
SO THANK YOU VERY MUCH FOR TOLERATING MY TECHNICAL DIFFICULTIES AND HOPEFULLY I'LL BE ABLE TO CONTINUE ON
THANK YOU
COMMISSION PRESIDENT STEINBREUCK
PRESIDENT STEINBREUCK GOT MUTED
SENDING THE UNMUTE PROMPT NOW
THANK YOU
BACK TO ORDER HERE
MOTION TO HOLD ITEM 6C FROM THE CONSENT AGENDA TO THE NEXT REGULAR MEETING HAS BEEN MOVED AND SECONDED
WE'VE HAD DISCUSSION AND NOW I'D LIKE TO CALL FOR A VOTE
CLERK
THANK YOU
COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
AND COMMISSIONER STEINBREUCK
YES
THAT MOTION PASSES UNANIMOUSLY COMMISSIONER
ARE THERE ANY OTHER MOTIONS TO AMEND THE CONSENT AGENDA? OR THE CALENDAR I SHOULD SAY? OKAY HEARING NONE COMMISSIONERS, THE QUESTION IS NOW ON THE APPROVAL OF THE AGENDA
PLEASE SAY YES OR NO WHEN YOUR NAME IS CALLED BEGINNING WITH COMMISSIONER BOWMAN
APPROVE
THANK YOU
COMMISSIONER CALKINS
AYE
COMMISSIONER CHO
AYE
COMMISSIONER FELLEMAN
YES
THANK YOU
THE AGENDA HAS BEEN APPROVED AS AMENDED
OKAY, VERY GOOD
WE'LL NOW TURN TO EXECUTIVE DIRECTOR STEVE METRUCK'S REPORT
DIRECTOR METRUCK
I BELIEVE DIRECTOR METRUCK HAS JOINED US VIA PHONE
IS THAT CORRECT? YOU'LL NEED TO PRESS STAR SIX TO UNMUTE
WHEN I TRIED CALLING IN IT DIDN'T WORK
SO I HAD TO FILL OUT THE SIGN AND SAY YOU CALL ME AND THEN IT DID WORK
OKAY I DO SEE HIM STILL LISTED AS ON THE DESKTOP APP
CAN YOU HEAR ME NOW? SO I SWITCHED COMPUTERS
SORRY ABOUT THAT
I WAS ON MY PHONE THEN I SWITCH COMPUTERS BACK TO ANOTHER COMPUTER AND I THINK WE'RE UP AND RUNNING
SO THANK YOU COMMISSIONER STEINBREUCK AND GOOD MORNING OR GOOD AFTERNOON COMMISSIONERS
JUST LIKE THAT, WE'RE WELL INTO AUGUST
FOR MANY, SUMMERTIME IN THE PACIFIC NORTHWEST USUALLY MEANS SPENDING TIME ENJOYING THE OUTDOORS WITH FRIENDS AND FAMILY, BUT HERE AT THE PORT OF SEATTLE, IT MEANS IT'S BUDGET SEASON
I GREATLY APPRECIATED THE COMMISSION'S TIME AND ENGAGEMENT LAST WEEK AT OUR SECOND BUDGET RETREAT
AT THIS MEETING WE FOCUSED ON OUR NON AIRPORT CAPITAL IMPROVEMENT PLAN FOR THE NEXT FIVE YEARS AND BEGAN DISCUSSIONS ABOUT THE PORT'S PROPERTY TAX LEVY FOR 2021
WE HAD A ROBUST DISCUSSION ABOUT OUR CRITICAL CAPITAL INVESTMENTS AND HOW WE FUND THEM IN ECONOMIC UNCERTAINTY
WE RECEIVED A NUMBER OF QUESTIONS FROM COMMISSIONERS, WHICH STAFF ARE ANALYZING AND WORKING HARD ON RESPONSES, WHICH WE HOPE TO HAVE FOR YOU SHORTLY
THE COVID-19 PANDEMIC PRESENTS US WITH UNPRECEDENTED CHALLENGES
LATER IN TODAY'S MEETING YOU WILL BE BRIEFED ON OUR SECOND QUARTER FINANCIAL PERFORMANCE, WHEN WE FIRST STARTED TO SEE SIGNIFICANT IMPACTS OF THE HEALTH EMERGENCY ON ALL OUR LINES OF BUSINESS: AVIATION, MARITIME, AND ECONOMIC DEVELOPMENT
LOOKING YEARS OR EVEN LONGER
MY APPROACH FOR NEXT YEAR'S BUDGET FORWARD, ECONOMIC RECOVERY MAY BE SLOW AND EXTEND OVER 2 OR 3 IS A CONSERVATIVE ONE
WE WILL FOCUS ON PRIORITY ELEMENTS OF OUR MISSION, REDUCE DISCRETIONARY SPENDING AND CONSERVE OUR RESOURCES
THAT WAY WE WILL BE BETTER POSITIONED TO ADAPT TO CIRCUMSTANCES IN THE COMING MONTHS
WE'LL BE BACK BEFORE THE COMMISSION IN SEPTEMBER FOR OUR NEXT ROUND OF BRIEFINGS
TURNING TO ACTIVITY AT THE AIRPORT, I KNOW WE'RE ALL HAPPY TO SEE AN UPTICK IN PASSENGER VOLUME AT SEA
WE ARE NOW PEAKING AT ABOVE 19 THOUSAND PASSENGERS, WHICH IS GOOD NEWS FOR OUR REVENUES, OUR AIRPORT BUSINESS PARTNERS, AND OUR REGIONAL ECONOMY
MORE TRAFFIC MEANS OUR HEALTH AND SAFETY MEASURES ARE EVEN MORE IMPORTANT
IF YOU'VE BEEN TO THE AIRPORT LATELY, YOU MAY HAVE SEEN THE VERY HIGH COMPLIANCE AMONG PASSENGERS AND EMPLOYEES WITH OUR MASK REQUIREMENT
THE MASK UP AT SEA PROGRAM CONTINUES TO BE WELL RECEIVED BY CUSTOMERS WITH OVER 4,200 MASKS DISTRIBUTED SO FAR
OUR OPERATIONS TEAM HAS DONE EXCELLENT WORK ANALYZING OUR COMPLIANCE RATE AND WE ARE CURRENTLY AT 92 PERCENT COMPLIANCE
THIS REFLECTS A LOT OF GREAT WORK BY AIRPORT STAFF AND COLLABORATION WITH ALL OF OUR AIRPORT PARTNERS
REGARDING AIRPORT DINING AND RETAIL, WITH THE INCREASE IN PASSENGER COMES THE INCREASE OF DINING AND RETAIL OPTIONS FOR OUR TRAVELERS
I'M PLEASED TO SHARE THAT BY THE END OF THIS WEEK, SEA WILL HAVE 75 OF 89 SPACES OPEN
THIS WEEK BALLARD BREWHALL ON D CONCOURSE AND DELISH ON C CONCOURSE WILL REOPEN
OVER THE NEXT TWO MONTHS, THREE NEW FOOD AND BEVERAGE BUSINESSES WILL COMPLETE CONSTRUCTION
WE APPRECIATE THEIR CONFIDENCE IN THE AIRPORT'S RECOVERY
COMMISSIONER STEINBREUCK, THANK YOU FOR RECOGNIZING DAWN HUNTER, OUR NEW DIRECTOR OF AVIATION COMMERCIAL MANAGEMENT
SHE'S A GREAT ADDITION AND WE CONGRATULATE HER ON THAT PROMOTION AS WELL
SHE'S REPLACING JIM SHOWN WHO'S HAD A GREAT CAREER HERE AT THE PORT
TURNING TO NATIONAL ISSUES REGARDING THE CARES ACT, THE SECOND PHASE OF THE CARES ACT, I'D LIKE TO REPORT THAT UNFORTUNATELY NEGOTIATIONS BETWEEN THE TRUMP ADMINISTRATION AND CONGRESSIONAL DEMOCRATS IN WASHINGTON HAVE BROKEN DOWN
DISAGREEMENT BETWEEN THE PARTIES INCLUDED BOTH [INAUDIBLE] NEEDED ECONOMIC STIMULUS, ONE TRILLION VERSUS THREE POINT FOUR TRILLION, AS WELL AS WHAT AREAS WERE GERMANE TO THE PACKAGE SUCH AS THE US POSTAL SERVICE FUNDING, MONEY FOR THE NOVEMBER ELECTION, AND NEW DOLLARS FOR COVID TESTING
THE GOOD NEWS IS THAT IF NEGOTIATIONS RESUME AIRPORTS ARE POSITIONED FOR ADDITIONAL FUNDING
THE SENATE REPUBLICAN LEGISLATION INTRODUCED BY MAJORITY LEADER MCCONNELL INCLUDED AN ADDITIONAL TEN BILLION DOLLARS FOR AIRPORTS, AND THERE WAS A GROWING MOMENTUM FOR A SEPARATE 3.5 BILLION DOLLARS FOR AIRPORT CONCESSIONAIRES
HOWEVER, ALL OF THAT IS ON HOLD UNTIL NEGOTIATIONS RESUME
THERE'S ALSO GROWING MOMENTUM FOR INCLUSION OF FUNDING FOR SEA PORTS AS WELL
IF A BILL COMES TOGETHER, SEA PORTS ARE STILL ON THE OUTSIDE LOOKING IN BUT THE ODDS APPEAR BETTER THAN THEY WERE JUST A FEW WEEKS AGO IN RECENT WEEKS, WE HAVE JOINED SEVERAL OTHER MAJOR PORTS IN REQUESTING 3.5 BILLION AS PART OF THE FINAL RELIEF PACKAGE
PORT STAFF CONTINUE TO ENGAGE WITH MEMBERS OF THE WASHINGTON CONGRESSIONAL DELEGATION, OTHER SEAPORTS AND AIRPORTS, AND OUR NATIONAL ASSOCIATIONS TO BUILD SUPPORT FOR ADDITIONAL RELIEF FOR PORT OPERATIONS, AND INFRASTRUCTURE
TURNING TO OUR HEALTH UPDATE, ACROSS THE PORT WE HAVE 40 EMPLOYEES WHO ARE CURRENTLY UNDER QUARANTINE
SEATTLE KING COUNTY PUBLIC HEALTH HAS ESTABLISHED KEY INDICATORS TO KEEP CLOSE TABS ON THE COVID VIRUS ACTIVITY WITHIN THE COMMUNITY
EIGHT KEY METRICS ARE REPORTED DAILY AND REPRESENT IMPORTANT INFORMATION ABOUT TRENDS AND TESTING CAPACITY, NUMBERS OF POSITIVE TESTS, NUMBER OF DEATHS RATES OF HOSPITALIZATIONS DUE TO THE VIRUS, AND HEALTH CARE READINESS
ONE STRONG INDICATOR OF VIRAL [INAUDIBLE] REPRODUCTIVE NUMBER OFTEN REFERRED TO AS THE RNOT
THE RNOT IS THE NUMBER OF PEOPLE ON AVERAGE THAT ONE INFECTED PERSON WILL SUBSEQUENTLY INFECT
CURRENTLY WE'RE AT AN RNOT OF 1.1 OF THE VIRUS THAT CAUSES COVID
SO THAT IS TRENDING IN THE RIGHT DIRECTION
TURNING TO OTHER ITEMS INCLUDING THE CENTURY AGENDA/ WE'D LIKE TO TALK ABOUT OUR STRATEGIC PLANNING EFFORTS
NEW TO THE BUDGETING PROCESS, THIS YEAR IS A VERTICAL ALIGNMENT OF OUR BUSINESS PLANS TO OUR OBJECTIVES AND GOALS IN THE CENTURY AGENDA
THE NEXT STEP IN THIS PROCESS IS FOR THE PUBLIC TO REVIEW AND COMMENT ON OUR PROPOSED OBJECTIVES
THIS WILL BE PUBLISHED ON THE PORT WEBSITE AND ADVERTISED THROUGH OUR REGULAR COMMUNICATION CHANNELS
THE COMMENT PERIOD WILL BE FROM AUGUST 14TH TO SEPTEMBER 18TH
WORK IS ALREADY UNDERWAY TO IDENTIFY AND CREATE KEY PERFORMANCE INDICATORS WHICH WILL PROVIDE YOU WITH VISIBILITY ON HOW WE'RE PERFORMING AS AN ORGANIZATION
IN OTHER DEVELOPMENTS, REGARDING THE SOUTH KING COUNTY FUND, SINCE OUR LAST MEETING WE HAVE OFFICIALLY LAUNCHED THE REQUEST FOR PROPOSALS FOR THE SOUTH KING COUNTY COMMUNITY FUND
AS YOU HEARD DURING THE ECONOMIC DEVELOPMENT PROGRAM BRIEFING LAST MONTH, THIS PROGRAM HAS BEEN EXPANDED TO INCLUDE ECONOMIC DEVELOPMENT TO HELP WITH COVID RECOVERY
THE RFP WILL BE ADVERTISED FOR TWO FULL MONTHS
DURING THIS TIME, THERE WILL BE AN INFORMATIONAL SESSION IN AUGUST
THE SESSION WILL BE RECORDED AND AVAILABLE TO THE PUBLIC ONLINE
IT'S PART OF THE PORT'S ONGOING ECONOMIC RECOVERY OPTIONS
THE PORT OF SEATTLE WILL BE SPONSORING A THREE-DAY VIRTUAL CONFERENCE IN MID SEPTEMBER HOSTED BY THE BELLE HARBOR INTERNATIONAL CONFERENCE CENTER
THE THREE-DAY PUGET SOUND ECONOMIC SUMMIT WILL ADDRESS THE GOAL OF ADVANCING AN EQUITABLE AND INCLUSIVE RECOVERY FROM THE IMPACTS OF THE COVID-19 PANDEMIC
THE INTERACTIVE CONFERENCE WILL FEATURE BUSINESS LEADERS, GOVERNMENT OFFICIALS, AND NONPROFITS DISCUSSING ISSUES FACING THE BUSINESS, HOSPITALITY, MEETINGS, EVENTS, AND TOURISM INDUSTRIES
IN ADDITION TO THE EVENT BEING LIVE-STREAMED, VIRTUAL NETWORKING AND TOURS WERE MADE AVAILABLE TO SHOWCASE BELLE HARBOR'S RECENT RENOVATIONS
BELLE HARBOR PLANS TO USE A MEDIA RELEASE THIS WEEK TO ANNOUNCE THE SUMMIT
YOU SHOULD BE RECEIVING AN INVITATION TO PARTICIPATE SOON
WE LOOK FORWARD TO YOUR PARTICIPATION IN THIS IMPORTANT AND TIMELY EVENT
REGARDING THE OPPORTUNITY MOTION, SINCE MY LAST UPDATE REGARDING THE YOUTH OPPORTUNITIES INITIATIVE PROGRAM CREATED EARLIER THIS SUMMER, WE HAVE SOME UPDATES TO THAT
LAST FRIDAY, JUNE 7TH WAS GRADUATION DAY FOR THE FIRST GROUP OF YOUTH COMPLETING A HANDS-ON CONSTRUCTION READINESS TRAINING PROGRAM
FOLLOWING PROGRAM COMPLETION, PARTICIPANTS ARE OFFERED TO ENROLL INTO THEIR PRIORITY HIGHER PROGRAM, WHICH PROVIDES CONTINUED SUPPORT TO ENHANCE THEIR LEARNED SKILL SET FOR EMPLOYMENT WITHIN THE TRADES INDUSTRY
MOVING TO TODAY'S COMMISSION MEETING, TODAY I'D LIKE TO HIGHLIGHT TWO ITEMS: ITEM 6J IS THE INTERLOCAL AGREEMENT WITH THE UNIVERSITY OF WASHINGTON SEA GRANT FELLOW PROGRAMS THAT WILL ALLOW US TO HOST TWO 12-MONTH HERSHMAN FELLOWSHIP POSITIONS
THE CANDIDATES THAT HAVE BEEN SELECTED ARE BOTH GRADUATES FROM THE UNIVERSITY OF WASHINGTON AND I'M VERY EXCITED ABOUT THE OPPORTUNITY
THEY WILL BE HELPING THE PORT ADVANCE SEVERAL NEAR TERM GOALS RELATED TO HABITAT RESTORATION AND AIR EQUALITY AS WELL AS CONTRIBUTING TO OUR EQUITY, DIVERSITY, AND INCLUSION PROGRAMS ITEM 9B IS A BRIEFING ON OUR SECOND QUARTER FINANCIAL PERFORMANCE
AS WE MOVE ALONG WITH THE 2021 BUDGETING PROCESS THESE BRIEFINGS BECOME INCREASINGLY IMPORTANT AS WE ASSESS A WAY FORWARD AND PRIORITIZE THEIR SPENDING FOR A NEW YEAR
I'LL HAVE SOME ADDITIONAL REMARKS WHEN INTRODUCED
COMMISSIONERS, THIS CONCLUDES MY REMARKS
THANK YOU
THANK YOU, DIRECTOR METRUCK FOR THE UPDATE AND REPORT
BEFORE WE MOVE ON TO PUBLIC COMMENT, I WILL NOW TURN TO OUR POLICY DIRECTOR IN THE COMMISSION OFFICE, AARON PRICHARD WHO WILL REPORT OUT ON COMMITTEES
WE HAVE NO COMMITTEE REPORTS FROM THE LAST TWO WEEKS
WE HAVE OUR NEXT COMMITTEE MEETINGS, OUR ENERGY SUSTAINABILITY ON AUGUST 17TH, EQUITY AND WORKFORCE DEVELOPMENT ON SEPTEMBER 10TH, AND AVIATION COMMITTEE ON SEPTEMBER 24TH
THANK YOU
GREAT
THANKS VERY MUCH AARON
I WILL NOW TURN TO ITEM NUMBER 5 WHICH IS PUBLIC COMMENT
THE COMMISSION WILL NOW ACCEPT PUBLIC COMMENT FROM THOSE WHO SIGNED UP
WRITTEN COMMENTS PROVIDED TO THE CLERK WILL BE INCLUDED IN TODAY'S MEETING RECORD
THE CLERK HAS A LIST OF THOSE PREPARED TO SPEAK AS THE CLERK CALLS YOUR NAME, WE WILL OPEN THE LINE AND COMMENTERS WILL HAVE TO UNMUTE THEMSELVES
PLEASE REPEAT YOUR NAME FOR THE RECORD
IF YOU'RE ON SKYPE MEETING AND ARE ALSO STREAMING THE MEETING, YOU WILL NEED TO MUTE THE VIDEO STREAM TO AVOID FEEDBACK AND PLEASE NOTE THERE'S A 3-MINUTE LEG ON THE VIDEO STREAM
COMMENT TIME WILL BE LIMITED TO TWO MINUTES PER PERSON
CLERK, PLEASE CALL THE FIRST SPEAKER
THANK YOU, COMMISSIONER STEINBREUCK
THE FIRST PERSON THAT I HAVE SIGNED UP TO SPEAK TODAY IS ALEX AMANAS
ALEX, IF YOU WERE ABLE TO JOIN US VIA PHONE YOU WILL NEED TO PRESS STAR SIX TO UNMUTE ON YOUR DEVICE
ALEX WAS NOT ABLE TO JOIN US THIS MORNING DURING ROLL SO I'M NOT SURE IF THEY'VE BEEN ABLE TO JOIN SINCE
OKAY, NEXT SPEAKER
I WILL GO TO BERNADINE LEND
BERNADINE, ARE YOU ABLE TO UNMUTE YOUR DEVICE? YES
I DID
I HAD SARAH NEXT? I CAN GO
I JUST THOUGHT SHE CAME FIRST
THAT'S OKAY
SOMETIMES THE ORDER GETS A LITTLE JUMBLED
OKAY
OH, HELLO COMMISSIONERS
THIS IS BERNARDINE LUND AND I HAVE THREE COMMENTS TODAY ALL RELATED TO NOISE
THE FIRST ONE IS ABOUT THE NOISE MONITOR DATA
I'M USING THE PORT NOISE MONITORED DATA TO ESTIMATE NUMBER OF FLIGHTS HAS BEEN HARD BECAUSE IT DOES NOT SEEM THE NOISE MONITORING COMPANY IS DOING ANY QUALITY CONTROL ON THE DATA
HAVING MISSING DATA AND VARIOUS NUMBER OF DUPLICATE FLIGHTS COUNTED SEEMS VERY UNPROFESSIONAL AND NOT SOMETHING FOR WHICH THE COMPANY WOULD WANT TO BE KNOWN
EVEN AS OF THIS WEEKEND, DATA IS NOT AVAILABLE FOR MONITOR #9 BEACON HILL FOR BOTH MAY AND JUNE
I STRONGLY RECOMMEND YOU INCLUDE LANGUAGE IN THE CONTRACT WITH THE NOISE MONITOR COMPANY TO INCLUDE MONITORING REPORTING AND INVESTIGATING MISSING DATA AND DATA ANOMALIES
IF NOT IN THE CONTRACT, THIS RESPONSIBILITY NEEDS TO BE ASSIGNED TO A PORT STAFF MEMBER
THE NEXT ITEM IS ABOUT DNL NOISE CALCULATION
THE FAA'S CALCULATION OF THE DNL NOISE MEASURE HAS BEEN SEVERELY CRITICIZED BECAUSE IT IS VERY INSENSITIVE TO PERIODIC RISING AND FALLING NOISE LEVELS AND INCREASES IN THE NUMBER OF NOISE EVENTS, AND I'M ASKING THAT YOU, AS PORT COMMISSIONERS, PLEASE PUSH THE FAA TO DEVELOP A NOISE MEASURE THAT IS MORE REPRESENTATIVE OF WHAT WE ARE HEARING
THE 2018 FAA REAUTHORIZATION BILL REQUESTED THE FAA TO EXAMINE AND DEVELOP A MORE REALISTIC MEASURE, BUT THE FAA DID NOT CHANGE THE MEASURE
AND I ALSO THOUGHT YOU COULD CONSIDER ASKING YOURSELF TO DEVELOP A MORE REALISTIC NOISE METRIC
YOUR STAFF SEEM VERY KNOWLEDGEABLE ABOUT NOISE AND HAVE ALREADY EXPLAINED THAT NOISE MONITORS ARE NOT GOOD AT PICKING UP LOW RUMBLE NOISE THAT WE HEAR OFTEN
AND THE THIRD COMMENT IS ABOUT SUPERSONIC FLIGHT
I DON'T KNOW HOW MANY PEOPLE HAVE BEEN MONITORING IT BUT STARTING ABOUT A YEAR AGO, THE COMPANY HAS BEEN DEVELOPING SUPERSONIC FLIGHT AND HAS EVEN ASKED THE FAA TO CHANGE ITS POLICIES TO ALLOW TESTING OF SUCH FLIGHTS
LANCE LITTLE MENTIONED THAT THEY HAVE ASKED FOR AND HE'S AGREED TO HAVE SUPERSONIC FLIGHTS REACH SEA-TAC AIRPORT BEGINNING NEXT FALL
PLEASE RECONSIDER AND REFUSE THIS REQUEST
OKAY
THANK YOU, BERNADINE
NEXT SPEAKER, PLEASE
YES NEXT I HAVE ANN CROKER
ANN HAS JOINED US VIA DESKTOP SO I'M SENDING THE UNMUTE PROMPT NOW
OKAY, YOU'VE GOT ME NOW? YEP
THANK YOU VERY MUCH
I WAS PRIMARILY GOING TO MAKE COMMENT ON ITEM 6E SO I'M GOING TO SHORTEN THAT AND THEN SEND IT IN WRITTEN MORE APPROPRIATELY FOR THE NEXT MEETING
SO I WILL SAY A LITTLE BIT ABOUT THAT
AND ONCE AGAIN, I'M ANN CROAKER, SOUTH DES MOINES RESIDENT, MEMBER OF QUIET SKIES PUGET SOUND AND OF 350 SEATTLE AVIATION
QUICKLY ON THE OTHER ITEM I'M GOING TO TALK ABOUT 6H WHICH IS ABOUT THE BATHROOMS AND WE LOVE THE IDEA OF MORE AIR FLOWING THROUGH ALL THE BATHROOMS AND NOT SURE WHY WE DIDN'T DO THIS SOONER, AND I DO REALIZE THIS IS ABOUT PAYING OFF DEBTS, BUT IT'S WITHIN THE LARGER PROJECT OF CONTINUING EXPANSION, AND I'M ASKING YOU PLEASE DO NOT EXPAND OUT
DO THE BATHROOMS THAT ARE THERE, DO NOT CREATE MORE INFRASTRUCTURE FOR FOR PASSENGERS TO COME WHO MAY NOT COME BUT ALSO HAVE NOT BEEN AUTHORIZED THROUGH THE SAMP YET
THANK YOU VERY MUCH FOR THAT
AND QUICKLY TO GO BACK TO THE ITEMS 6E REGARDING NOISE MONITORING
WHAT WE REALLY WOULD LIKE THE PORT TO DO IS TO SET UP A NOISE MONITOR SYSTEM, REAL FLIGHT PATTERNS, THE FULL LENGTH OF ALL OF THEM, PERMANENTLY CHECKED, RECORDED, AND CHECKED AGAIN
THE PORT NEEDS TO FULLY SERVE ALL OF THEIR CONSTITUENTS AND NOT ALLOW EAR-SHATTERING AND STOMACH WRENCHING NOISE MACHINES TO ATTACK THE HEALTH AND PSYCHES OF THE PEOPLE AND CREATURES UNDERNEATH THESE FLIGHT PATHS EVERY DAY AND EVERY NIGHT
WE NEED YOU TO CARE ABOUT THE COMMUNITY UNDER THE TARGETED FLIGHT PATHS WHO BEAR THE BRUNT OF THE NOISE HARM TO HEALTH AND THE DISRUPTION TO THEIR ABILITY TO CONDUCT THEIR LIVES AS EFFECTIVELY AS THOSE WHO DO NOT HAVE TO BEAR THIS
AND THEN WE NEED YOU TO ACT ACCORDINGLY
THANK YOU VERY MUCH FOR THE ATTENTION TO THIS MATTER NOW AND FOR THE UPCOMING MEETING
THANK YOU ANN
NEXT SPEAKER, PLEASE
YES, NEXT I HAVE JC HARRIS AND MR HARRIS HAS JOINED US FROM DESKTOP SO I'M SENDING THE UNMUTE PROMPT NOW
GOOD AFTERNOON COMMISSIONERS
IT JUST OCCURRED TO ME THAT IT'S BEEN 4 YEARS SINCE I FIRST CAME BEFORE YOU AND I ASKED DAVID SWANKY TO MAKE THE NOISE MONITOR DATA PUBLIC WHICH IT WAS NOT AT THE TIME AND SO THAT I COULD CREATE SPREADSHEETS SHOWING THE NUMBER OF FLIGHTS AND THE DECIBEL LEVELS OVER EACH COMMUNITY
AND YOU GUYS DID IT AND IT WAS POPULAR ENOUGH THAT YOU THEN CREATED THE TABLEAU SYSTEM NOW FOR YOURSELVES, WHICH THOUSANDS OF PEOPLE HAVE TAKEN A LOOK AT
SO YAY
TRANSPARENCY
GREAT
SO THE PROBLEM IS THE MOMENT I STARTED ANALYZING THE DATA, AND THIS IS LIKE FOUR YEARS AGO, IF IT WAS CLEAR THAT THE MONITORS
THEY'RE JUST WRONG
A LOT OF THE TIME THEY MISS EVENTS AND THEY GET THE ACTUAL NOISE LEVEL WRONG BY LIKE UP TO 10 DBE'S WHICH IS A LOT
SO I'M GLAD THAT YOU'RE PULLING ITEM 6B
THE VENDOR OFFERS THE OPTION TO GIVE YOU THE RAW RECORDING FILES AND I WOULD ASK YOU TO INSIST UPON THAT FROM THE VENDOR BECAUSE THAT'S THE ONLY WAY FOR US TO AUDIT THE RESULTS THAT WE GET
ALL RIGHT
AND GIVEN THE REALLY RAMPANT INACCURACY OF THE DATAM I THINK THEY SHOULD THROW IT IN FOR NOTHING
MR GOEBEL HAS EVERY RIGHT TO EXPECT THAT HE CAN HAVE AN AUDIT TRAIL TO VERIFY HIS NEW NOISE MONITOR IS GIVING THE RESULTS THAT HE HOPES IT WILL
JUST A COUPLE MORE SECONDS
THERE ARE A NUMBER OF REASONS WHY THE MONITORS GIVE INACCURATE DATA AND THE BIGGEST REASON IS THAT THEY'RE IN THE WRONG SPOTS
THAT MAY BE TOO HEAVY A LIFT FOR IMMEDIATE RELIEF BUT RIGHT NOW IF WE CAN JUST GET THAT RAW DATA FROM THE VENDOR THAT WILL GO A LONG WAY TO HELPING THE COMMUNITY
OKAY
THANK YOU
JC
NEXT SPEAKER, PLEASE
NEXT IS DAVID GOEBEL AND MR GOEBEL HAS JOINED US ON DESKTOP AS WELL
SO I WILL BE SENDING THE UNMUTE PROMPT NOW
HELLO
YES, I CAN HEAR YOU
SO I HAVEN'T HAD A HAIRCUT IN-- CAN YOU SEE ME TOO? I CAN'T CURRENTLY BUT THERE YOU GO
SO I HAVEN'T HAD A HAIRCUT IN SEVEN MONTHS
SO HOPEFULLY WHEN I SEE YOU AGAIN IN PERSON, I'M LOOKING FORWARD TO THAT, I'LL LOOK NOT QUITE SO MUCH LIKE A SEA MONSTER
ANYWAY, I'M DAVID GOEBEL, THE PRESIDENT OF VASHON FAIR SKIES, 501 C 3 AND SPEAKING TODAY ALSO ON ITEM 6E, THE UNANIMOUS CONSENT CALENDAR
I'D HAVE TO ASK IT NOW TO BE PULLED BUT IT HAS BEEN, AT LEAST DELAYED UNTIL THE NEXT MEETING
THIS CONTRACT IS ABSOLUTELY CENTRAL TO THE PORT'S COMMUNITY NOISE OPPERATIONS AND THERE'S BEEN NO OPPORTUNITY TO REVIEW THE CHANGES IN THE CONTRACT
I HAVE A COPY OF THE EXISTING HARRIS L3 CONTRACT FOR THE NOISE MONITORS AND I OPEN PUBLIC RECORDS REQUEST 20-314 JUST RECENTLY TO GET A COPY OF THE NEW ONE, THE ONE THAT WAS IN ITEM 6E AND SO I'M SOON AS I GET THAT I'M GOING TO COMPARE IT TO THE OLD ONE BASICALLY AND SEE WHAT THE CHANGES WERE
IF THAT TAKES A LONG TIME, HOPEFULLY IT WON'T TAKE MORE THAN A FEW WEEKS
BUT IF IT RUNS UP TO I DON'T HAVE IT FOR THE NEXT MEETING, YOU'LL BE HEARING FROM ME IN SIDE CHANNELS
I'M PARTICULARLY CONCERNED ABOUT THE RAW DATA AS WELL
THE SECOND BY SECOND DATA ON THE LARSON DAVIS MONITORS
IT'S IMPORTANT THAT [INAUDIBLE] THE MONITORS
THIS IS PORT OWNED MONITORS AND IS PORT OWNED DATA AND WHAT L3 HARRIS DOES IS PERIODICALLY DOWNLOAD THAT DATA TO THEN GENERATE THE SUMMARY RESULTS AND THEN THEY PURCHASE FROM THE MONITORS
BUT YOU HAVE ACCESS THAT DATA
YOU CAN DOWNLOAD IT YOURSELF
I SUBMITTED A WRITTEN COMMENT TODAY EXPLAINING IN DETAIL THE TECHNICAL NEEDS FOR THE RAW DATA, IT'S ONLY THREE PAGES AND IT HAS SEVERAL NEAT PICTURES
SO IF YOU COULD PLEASE TAKE A LOOK AT THAT, SHOULD BE PART OF THE RECORD, SHOULD HAVE RECEIVED IT
COLOR PICTURES AND THINGS
SO ONLY THREE PAGES IF YOU COULD JUST TAKE THE TIME JUST TO READ IT THAT'D BE GREAT
I REVIEWED THE CURRENT HARRIS CONTRACT AND SOMETHING IS THERE THAT EXPLICITLY PROHIBITS THEM FROM GOING AND ALLOWING ALLOWING THE PORT TO ACCESS THEIR OWN DATA BECAUSE THAT WOULD BE SILLY BUT THERE'S NOTHING THAT SAYS THAT PROGRAMS FOR YOU TO GET THAT DATA AGAIN
YOU COULD DOWNLOAD IT OR L3 HARRIS COULD JUST SIMPLY PROVIDE IT TO YOU WITH THE SUMMARY RESULTS, WHICH IS KIND OF ROUNDABOUT
BUT IDEALLY YOU WOULD BE ABLE TO JUST KEEP IT
I WAS AT A NOISE CONFERENCE MEETING IN MARCH AND I SPOKE WITH L3 HARRIS STAFF THERE AND THEY SAID THERE'S NO TECHNICAL PROBLEM TO YOU GUYS RETAINING THE DATA
IT'S ABOUT SIXTY TWO MEGABYTES PER MONTH WHICH IS NOTHING AND SO I ENCOURAGE YOU TO TAKE THAT, WHEN YOU LOOK AT MORE DETAIL THE CONTRACT, TO TAKE THAT INTO CONSIDERATION
THANK YOU
THANK YOU, DAVE
OTHER SPEAKERS? YES NEXT I HAVE SARAH SHIVELY
HI, MY NAME IS SARAH SHIVELY
I'M A MEMBER OF THE 360 SEATTLE AVIATION TEAM
THE SUBSTANTIALSUSTAINED DROP IN SEATAC USE AS SHOWN IN THE Q2 2020 FINANCIAL PERFORMANCE BRIEFING PRESENTS YOU WITH UNPRECEDENTED OPPORTUNITY TO EVALUATE AND CHANGE THE COURSE OF SEATAC OPERATIONS
THE PORT CAN SEIZE THIS OPPORTUNITY STARTING BY TAKING STEPS TO FULLY UNDERSTAND TWO THINGS: SEATAC'S ROLL IN OUR CURRENT CLIMATE CRISIS, AND THE ONGOING ENVIRONMENTAL INJUSTICES [INAUDIBLE] BASED ON KING COUNTY'S MOST RECENT GREENHOUSE GAS EMISSIONS INVENTORY, EMISSIONS FROM SEATAC ACCOUNT FOR ABOUT A QUARTER OF THE COUNTY'S EMISSIONS BASED ON FUEL PUMP
AND THAT'S BEFORE CONSIDERING THAT AVIATION EMISSIONS HAVE A 2 TO 4 TIMES GREATER WARMING IMPACT THAN ON THE GROUND EMISSIONS
YOU ARE ENABLING THESE EMISSIONS AND THEY ARE YOUR RESPONSIBILITY
TO NOT ADDRESS THE FULL ADMISSION THAT YOU ENABLE OR EVEN ACKNOWLEDGE THAT THEY EXIST IS IRRESPONSIBLE, IF NOT IMMORAL
AND ON TOP OF THAT, WE KNOW THAT AIR NOISE POLLUTION FROM SEATAC OPERATIONS IS CONCENTRATED ON LOW-INCOME COMMUNITIES AND COMMUNITIES OF COLOR CAUSING VARIOUS LIFE-THREATENING HEALTH CONDITIONS, PRETERM BIRTHS, AND LOWER LEARNING OUTCOMES
THIS CONCENTRATION OF POLLUTION IS A RESULT OF YOUR INACTION AND IT IS FULLY YOUR RESPONSIBILITY TO ADDRESS THIS
EXECUTIVE DIRECTOR METRUCK WAS WRONG WHEN HE SAID DURING HIS REPORT THAT WE ARE ALL HAPPY TO SEE INCREASED TRAFFIC AT SEATAC
IMPACTED COMMUNITIES ARE NOT HAPPY
INSTEAD OF EXPANDING BATHROOMS AT SEATAC, OR PATTING YOURSELF ON THE BACK FOR PURCHASING NATURAL GAS, HERE'S WHAT YOU SHOULD BE DOING: COMPLETING A THOROUGH GREENHOUSE GAS EMISSION INVENTORY OF AIRPORT OPERATIONS, INCLUDING ALL EMISSIONS FROM FUEL PUMPS AND FACTORING AND RADIATIVE FORCING, COMPLETING AN ANALYSIS OF THE DISPARATE IMPACT SEATAC AIR TRAFFIC HAS ON NOISE POLLUTION, THE DISPARATE IMPACT SEATAC AIR TRAFFIC AND NOISE POLLUTION HAVE ON MARGINALIZED COMMUNITIES AND COMMUNITIES OF COLOR
AND WHILE I UNDERSTAND THERE ARE CONCERNS ABOUT REVENUE AND [INAUDIBLE[ ON LOCALLY OWNED SMALL BUSINESSES, THE PORT HAS AUTHORITY TO RESTRUCTURE USAGE FEES IF REVENUE IS OF THE UTMOST CONCERN AND TO STRUCTURE COSTS SO THEY DON'T CREATE FURTHER INEQUITY FOR LOCALLY OWNED SMALL BUSINESSES
THANK YOU
OKAY, THANK YOU
NEXT SPEAKER, PLEASE
YES
JORDAN VAN VOST IS WHO I HAVE SIGNED UP NEXT
JORDAN
GOOD AFTERNOON, COMMISSIONERS, EXECUTIVE DIRECTOR METRUCK AND PORT STAFF
MY NAME IS JORDAN VAN VOST
ABOUT TWO WEEKS AGO THE LAST [INAUDIBLE] IN THE CANADIAN ARCTIC COLLAPSED LOSING MORE THAN 40% OF ITS AREA AND JUST TWO DAYS [INAUDIBLE] SQUARE KILOMETERS
BY COMPARISON THE ISLAND OF MANHATTAN COVERS ROUGHLY 60 SQUARE KILOMETERS
AS A CHILD PLAYING AT THE CITY POOL OR WALKING THROUGH THE WOODS, IT NEVER OCCURRED TO ME THAT HUMANITY WAS DURING THE ANTHROPOCENE EXTINCTION ERA, A TIME WHEN PERHAPS 90% OF LIFE DISAPPEARS FOREVER, BUT THAT IS UNDENIABLY WHAT IS HAPPENING ACCORDING TO AN OVERWHELMING MAJORITY OF SCIENTISTS
ONE SUNDAY EARLY THIS MONTH I PADDLED 20 MILES IN A KAYAK
WE PASSED A SMALLER ROOKERY OF CRITICALLY ENDANGERED SEALIONS, SAW TWO EAGLES, ONE GREAT BLUE HERON, A FEW HARBOUR PORPOISE, SOME SEALS, ZERO ORCAS OR OTHER WHALES AND NO SIGN OF SALMON
OUR OCEANS ARE DYING AND IT'S NOT AS SIMPLE AS A FEW DAMS ON THE COLUMBIA RIVER BUT PART OF A MUCH BROADER PATTERN OF HOW HUMANS THROUGH OUR COLLECTIVE CHOICES HAVE CHANGED THE BIOSPHERE OVER THE PAST FEW CENTURIES
WEARING A MASK IN PUBLIC IS SEEN AS A RESPONSIBLE ACTION TO SAVE LIVES AND PREVENT HARM
DISMANTLING THE NON-ESSENTIAL CRUISE INDUSTRY WITH ITS MANY ADVERSE IMPACTS TO THE CLIMATE, THE GLOBAL ENVIRONMENT, PUBLIC HEALTH, COASTAL COMMUNITIES, WORKERS SHOULD SIMILARLY BE VIEWED AS AN APPROPRIATE RESPONSE TO THE EMERGENCE THREAT OF ECOLOGICAL COLLAPSE
THE CLIMATE EMERGENCY IS ALREADY KILLING PEOPLE IN VULNERABLE FRONTLINE COMMUNITIES PARTICULARLY IN THE GLOBAL SOUTH AND OUR CHOICES IN THE FOURTH WORLD, PARTICULARLY BY GOVERNMENT DECISION-MAKERS, MAKES US COMPLICIT
THIS INDUSTRY IS NOT ESSENTIAL AND THERE ARE OTHER WAYS TO STIMULATE ECONOMIC ACTIVITY AND [INAUDIBLE] PLEASE CANCEL THE T-46 PROJECT AND SHRINK THE CRUISE INDUSTRY AND ALSO THE AVIATION INDUSTRY IN SEATTLE
BE A TRUE LEADER FOR PORT CITIES AROUND THE WORLD BY INITIATING A RAPID RESPONSE TO CLIMATE
THANK YOU
THANK YOU
NEXT SPEAKER
YES
IRIS ANTMAN
GOOD AFTERNOON
THIS IS A IRIS ANTMAN
I'D LIKE TO THANK YOU FOR WITHDRAWING THE RFP FOR THE THIRD CRUISE SHIP TERMINAL AND THEREFORE HALTING THE PROJECT FOR NOW
AS A MEMBER OF SEATTLE CRUISE CONTROL, I'D LIKE TO THINK OUR GROUP HAD AN IMPACT ON THIS DECISION, BUT THAT WOULD BE NAIVE
I UNDERSTAND THE DECISION WAS MADE BECAUSE OF THE PANDEMIC AND THE ORDER FROM THE CDC TO HOLD CRUISING FOR NOW
THE PORT OF SEATTLE IS A VITAL PART OF OUR CITY HISTORICALLY, ECONOMICALLY, AND SOCIALLY AND COMMISSIONERS HAVE AN OPPORTUNITY TO SHINE FOR MAKING BOLD AND COURAGEOUS DECISIONS THAT REFLECT THE REALITY OF THE CLIMATE EMERGENCY
OUR GROUP HAS OFFERED DETAILED TESTIMONY ON THE ADVERSE EFFECTS ON PUBLIC HEALTH, MARINE LIFE, HEALTH, AIR AND WATER POLLUTION, LABOR PRACTICES, PORT COMMUNITIES, GLOBAL WARMING EFFECTS OF MASSIVE GREENHOUSE GAS EMISSIONS IGNORING ALL OF THIS VERY 20TH CENTURY
ADDITIONALLY ANOTHER WAY OF UNDERSTANDING OUR OPPOSITION TO EXPANDING CRUISING AND OUR WISH FOR THE INDUSTRY TO ACTUALLY SHRINK IS TO LOOK DIRECTLY AT THE INDUSTRY ITSELF IN THE WAY IT DOES BUSINESS
IT'S POOR TREATMENT OF WORKERS AND PORT OF CALL CITIES, ITS HISTORY OF ILLEGAL WASTE DUMPING, AND ITS CORPORATE STRUCTURE TO AVOID PAYING TAXES, ENABLING CORPORATE PLAYERS TO CONTINUE WITH THEIR UNETHICAL PRACTICES IS COMPLICITY
WE MUST DO BETTER
YOU MUST DO BETTER
NOT ONLY SHOULD YOU SCRAP THE PLAN AT T-46 PERMANENTLY, BUT YOU SHOULD WORK WITH THE INDUSTRY TO DEMAND THEY CLEAN UP THEIR ACT IN HUGE AND MEANINGFUL WAYS
IF THEY ARE NOT WILLING TO DO THIS, IT IS TIME FOR THE PORT TO SAY NO TO CRUISING AND TURN TO OTHER IDEAS FOR AN ALIVE AND VIBRANT 21ST CENTURY SEATTLE WATERFRONT
THANK YOU VERY MUCH
OKAY, THANK YOU
NEXT SPEAKER, PLEASE
I'M GOING TO GO BACK ONE MORE TIME
THAT IS EVERYONE
BUT I'M GOING TO GO BACK TO ALEX TO SEE IF THEY'VE BEEN ABLE TO JOIN US
OKAY
OKAY, IS ALEX IN ATTENDANCE? DON'T BELIEVE SO, I DON'T THINK I'VE SEEN ANY NEW NUMBERS COME ON
LET'S TURN TO THE CLERK'S SYNOPSIS OF WRITTEN COMMENTS RECEIVED INCLUDING THE INDIVIDUAL NAMES OF THE INDIVIDUALS WHO SUBMITTED
THANK YOU
MR COMMISSIONER PRESIDENT, MEMBERS OF THE COMMISSION
TODAY WE'VE RECEIVED FIVE WRITTEN COMMENTS FOUR CORRESPOND TO OUR PUBLIC SPEAKERS TODAY FROM MISS BERNADINE LUND, FROM MISS SARAH SHIVELY, FROM MR DAVID GOEBEL, AND FROM MR JORDAN VAN VOST
THE FIFTH RECEIVED FROM MISS LAURA GIBBONS
SHE'S A SEATTLE RESIDENT AND VOLUNTEER OF MEMBER 360 SEATTLE'S AVIATION TEAM AND SHE WRITES REGARDING A REQUEST BY SEVEN AIRLINES FOR LEASE REDUCTIONS AND ASKS FOR A REDUCTION IN AVIATION NOT SUBSIDIES IN AIRLINE INDUSTRY
THAT'S THE REPORT ON WRITTEN COMMENTS
THANK YOU CLERK HART
THANK YOU
WITH THAT, WE MOVE TO THE NEXT ITEM, NUMBER SIX, WHICH IS THE UNANIMOUS CONSENT CALENDAR WHICH HAS BEEN AMENDED BY MOTION AND VOTE
AND NORMALLY WE DON'T TAKE COMMENT OR WE DON'T DISCUSS CONSENT AGENDA ITEMS BUT COMMISSIONER BOWMAN HAS ASKED TO OFFER A FEW COMMENTS ON SOME OF THE ITEMS ON THE CONSENT AGENDA
COMMISSIONER BOWMAN
GREAT
THANK YOU
CAN YOU HEAR ME? YES, WE CAN
THANK YOU SO MUCH FOR PULLING ITEM 6E
BUT FOR 6K, THE QUESTIONS THAT I HAVE FOR THE STAFF, AGAIN YOU CAN JUST PROVIDE THESE IN A WRITTEN FORMAT LATER, THIS IS REGARDING ECONOMIC RECOVERY CONTRACT WITH MARITIME BLUE
I'D JUST LIKE TO UNDERSTAND HOW THIS CONTRACT IS DIFFERENT THAN THE CURRENT SUPPORT THAT WE PROVIDE FOR MARITIME BLUE
MY SECOND QUESTION IS WHAT OTHER FUNDING SOURCES SPECIFICALLY DOES MARITIME BLUE HAVE BESIDES THE PORT OF SEATTLE? AND THEN MY THIRD QUESTION IS IS THIS $300,000 CONTRACT REQUEST INCLUDED IN THE 2020 BUDGET OR IS IT FOR THE 2021 BUDGET? THOSE ARE MY THREE QUESTIONS THERE
AGAIN, I SUPPORT APPROVAL OF IT, BUT NONE OF THOSE QUESTIONS WERE APPARENT IN THE MEMO
OKAY, AND IT'S ALWAYS GOOD TO TRY TO GET QUESTIONS IN IN ADVANCE OF A COMMISSION MEETING WHEN THE TOPIC IS UP FOR A VOTE SO APPRECIATE THOSE THOUGHTFUL QUESTIONS COMMISSIONER BOWMAN
AND I WANT TO APOLOGIZE TO STAFF BUT YOU KNOW, WE RECEIVED THE AGENDA ON THURSDAY AND I DON'T CURRENTLY HAVE PERMANENT STAFFING SO IT'S DIFFICULT FOR ME TO GET ALL MY QUESTIONS ANSWERED BUT IF I CAN GET SOME STAFF ASSIGNED, I'D BE HAPPY TO GET THOSE IN EARLIER
OKAY
THANK YOU
SO AT THIS AT THIS TIME THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT CALENDAR COVERING ITEM 6 A B C D E F G H I J AND 6 K
IS THERE A MOTION? SO MOVED
AND A SECOND, PLEASE
SECOND
IT'S BEEN MOVED AND SECONDED
CLERK, PLEASE CALL THE ROLL
WHEN YOUR NAME IS CALLED PLEASE SAY YES OR NO ON THE MOTION TO APPROVE THE CONSENT AGENDA AS AMENDED
THANK YOU
MR PRESIDENT
BEGINNING WITH COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER CHO AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER STEINBREUCK, FOR APPROVAL OF THE AGENDA
YES
THANK YOU
THAT MOTION IS APPROVED UNANIMOUSLY
OKAY, THE CONSENT AGENDA HAS BEEN APPROVED UNANIMOUSLY
ON TO ITEM NUMBER SEVEN SPECIAL ORDERS OF OUR MEETING
THERE ARE NO SPECIAL ORDERS
WE'RE ACTUALLY AHEAD OF SCHEDULE HERE ON OUR MEETING TIME
THERE ARE ALSO NO AUTHORIZATIONS UNDER ITEM 8 TODAY SO WE WILL NOW TURN TO ITEM 9, WHICH IS PRESENTATIONS, REPORTS, AND STAFF BRIEFINGS
WE HAVE TWO SCHEDULED BRIEFINGS
CLERK
PLEASE READ THE FIRST ITEM INTO THE RECORD
THANK YOU, MR COMMISSION PRESIDENT
THE FIRST ITEM BEFORE YOU IS ITEM 9A, RECREATIONAL BOATING BRIEFING
COMMISSIONERS, THIS ITEM ON OUR AGENDA IS A STAFF BRIEFING ON OUR RECREATIONAL BOATING LINE OF BUSINESS WITH A SPECIFIC FOCUS ON OUR FLAGSHIP RECREATIONAL BOATING FACILITY THE SHILSHOLE MARINA
THE PORT OF SEATTLE OPERATES FOUR RECREATIONAL BOATING MARINAS REPRESENTING 1700 MOORAGE SLIPS
SHILSHOLE MARINA HOSTS THE LARGEST LIVE ABOARD COMMUNITY ON THE WEST COAST
TODAY, YOU'LL HEAR ABOUT THE RECREATIONAL BOATING PORTFOLIO WHICH INCLUDES AN OVERVIEW OF OUR MARINAS, CAPITAL DEVELOPMENT ENVIRONMENTAL COMPLIANCE, AND WORKFORCE DEVELOPMENT PROGRAMS YOU'LL ALSO HEAR HOW THE RECREATIONAL BOATING TEAM IS RESPONDING TO THE COVID-19 HEALTH CRISIS AS IT RELATES TO CUSTOMER AND COMMUNITY COMPLIANCE WITH STATE HEALTH MANDATES AND SAFETY PROTOCOLS
PRESENTING TODAY ARE KENNETH LYLES, DIRECTOR MARITIME OPERATIONS AND SECURITY AND JOE WOODS, SENIOR MANAGER RECREATIONAL BOATING
THANK YOU, DIRECTOR METRUCK, PRESENTERS
PLEASE UNMUTE OUR PRESENTERS AND PRESENTERS PLEASE UNMUTE YOURSELVES
COMMISSIONERS WILL REMAIN MUTED UNTIL THE PRESENTATION IS COMPLETE
AT THAT TIME I WILL CALL ON EACH OF YOU TO ASK QUESTIONS OR OFFER COMMENTS IN THE ORDER ALPHABETICALLY
THANK YOU
GOOD AFTERNOON, PRESIDENT STEINBREUCK
KENNY! YES, 'TIS I! GOOD AFTERNOON PRESIDENT STEINBREUCK, COMMISSIONERS, AND EXECUTIVE DIRECTOR METRUCK
WE ARE HERE TO PRESENT A STAFF BRIEFING ON RECREATIONAL BOATING BUSINESS ON THE RECREATIONAL BOATING BUSINESS PORTFOLIO WHICH WILL INCLUDE A PROFILE OF THE RECREATIONAL BOATING PRODUCTS, PROGRAMS, AND THE STRATEGIC MARITIME DIVISION MANAGEMENT PRIORITIES AND PRINCIPLES AS THEY APPLY TO THIS LINE OF BUSINESS
I WOULD LIKE TO INTRODUCE OUR SENIOR MANAGER FOR RECREATIONAL BOATING, JOE WOODS, WHO WILL GUIDE YOU THROUGH THE PRESENTATION
JOE JOINED THE OPERATIONS AND SECURITY DEPARTMENT EIGHT MONTHS AGO AFTER SPENDING THE PAST 22 YEARS IN AVIATION OPERATIONS
SINCE TAKING THE POST LAST NOVEMBER SHE'S EXHIBITED HER LEADERSHIP ACUMEN BY MANAGING ONE BIG EVENT AFTER ANOTHER FROM A MAJOR YACHT FIRE TO ENVIRONMENTAL HAZARDS TO OVERSEEING CAPITAL DEVELOPMENTS AT LOCATIONS ALL LEADING UP TO THE CURRENT HEALTH CRISIS
JO STARTED AS AN INTERN AT SEA-TAC AIRPORT AND HAS SINCE PROMOTED HERSELF TO VARIOUS LEADERSHIP POSITIONS
SHE EVENTUALLY PROMOTED HERSELF TO [INAUDIBLE] OPERATION SUPERVISOR AND ON TO BECOME AN AIRPORT DUTY MANAGER
AFTER SOME YEARS IN THAT CAPACITY SHE BECAME AN AIRPORT OPERATIONS MANAGER FOR A LANDSLIDE AND LOAD DOCK AT SEA-TAC AIRPORT
AMONG A LIST OF LEADERSHIP RESPONSIBILITIES IN THAT CAPACITY, SHE MANAGED THE EMPLOYEE BUS SERVICE WHICH PROVIDED TRANSPORTATION FOR OVER TWO POINT TWO MILLION RIDERS PER YEAR
JO'S CUSTOMER SERVICE SKILLS, OPERATIONAL LEADERSHIP WHICH INCLUDES INCIDENT COMMAND MANAGEMENT, AND HER COMMITMENT TO CONTINUOUS PROCESS IMPROVEMENT HAVE PREPARED HER FOR THE CURRENT LEADERSHIP CHALLENGES SHE IS FACING AS A SENIOR MANAGER OF RECREATIONAL BOATING AND OUR MARITIME OPERATIONS AND SECURITY DEPARTMENT
AND WITH THAT I WOULD LIKE TO NOW PRESENT JO WOODS
THANK YOU KENNY
IT'S AN HONOR TO CONTINUE DEVELOPING MYSELF AT THE PORT OF SEATTLE
LAUREN, CAN YOU PLEASE ADVANCE TO SLIDE THREE? GOOD AFTERNOON COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
TODAY I WILL PROVIDE AN OVERVIEW OF THE RECREATIONAL BOATING PORTFOLIO AND BRING FOCUS TO THE PRINCIPLES THAT DRIVE OUR OPERATION'S FINANCIAL STABILITY, ENVIRONMENTAL SUSTAINABILITY, PUBLIC ACCESS TO THE WATER, AND DIVERSITY AND INCLUSION
IN A NORMAL YEAR THESE PRINCIPLES DIRECT OUR POLICIES, PROCEDURES, AND CUSTOMER SERVICE OBJECTIVES
HOWEVER, 2020 HAS BEEN ANYTHING BUT NORMAL THE RECREATIONAL BOATING TEAM IS RESPONDING TO THE COVID-19 PANDEMIC IN SEVERAL UNIQUE WAYS THAT MUST BE DISCUSSED TO HIGHLIGHT THE DIVERSITY OF BUSINESS AT THE PORT OF SEATTLE
NEXT SLIDE, PLEASE
SOME OF OUR IMMEDIATE RESPONSES INCLUDED CLOSING THE ON-SITE OFFICES AT SHILSHOLE BAY AND BELLE HARBOR TO WALK IN VISITORS, REDUCING THE NUMBER OF IN-OFFICE STAFF BY 50% THROUGH TELEWORKING, COMPLETION OF A DEEP CLEAN FOR OFFICES AND THE PUBLIC RESTROOMS AT SHILSHOLE BAY, DEVELOPMENT OF THE MOORAGE DEFERRAL PLAN, WHICH REQUIRED COLLABORATION WITH OTHER PORT OF SEATTLE DEPARTMENTS
WE ARE ACTIVELY WORKING WITH 34 CUSTOMERS TO PROVIDE MOORAGE UTILITIES DEFERRAL FOR THE MONTHS OF APRIL, MAY, AND JUNE
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CONTINUING THAT COLLABORATION EFFORT, WE HAVE ONGOING COMMUNICATION WITH THE SHILSHOLE BAY EMERGENCY PREPAREDNESS GROUP CALLED SHILSHOLE PREPARES
WE HAVE TRANSITIONED TO VIRTUAL DOT CAPTAIN'S MEETINGS, WHICH AFFORDED US THE OPPORTUNITY TO INCLUDE MORE MEMBERS OF OUR LIVE ABOARD COMMUNITY THAN WHEN WE USED TO MEET IN PERSON
AND THROUGH IT ALL, OUR FRONTLINE ESSENTIAL WORKERS PLAY A MAJOR ROLE IN THE SUCCESS OF OUR RESPONSE
THANK YOU TO THE ENTIRE REC BOATING TEAM
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OUR STEPS AFTER THE INITIAL RESPONSE AND IN KEEPING UP WITH CHANGING MANDATES WERE TO PLACE VARIOUS TEMPORARY RESTRICTIONS AT SHILSHOLE BAY MARINA
THIS INCLUDED PARTIAL ACCESS TO THE PARKING LOT, TRANSITIONING THE PLAZA AREA TO A WALKING THOROUGHFARE, RESTRICTING ALL ACCESS TO PICNIC TABLES AND BENCHES, AND CLOSING THE PUBLIC RESTROOM AT THE A1 BUILDING
A VERY SPECIAL THANK YOU TO MARINE MAINTENANCE FOR INSTALLING THE PLEXIGLASS BARRIERS AND HAND SANITIZERS WHICH ARE NOW LOCATED AT EACH DOCK
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AS WE'VE EVOLVED IN OUR RESPONSE, SO HAS OUR SIGNAGE
WE ENGAGE IN CONTINUED EFFORTS TO PROMOTE HEALTH AND SAFETY AT OUR FACILITIES AND OUR OPERATIONS CONTINUE TO COMPLY AND FOLLOW THE GUIDANCE OF OUR FEDERAL AND STATE PUBLIC HEALTH OFFICIALS
THANK YOU MARKETING AND MARINE MAINTENANCE FOR DESIGNING AND INSTALLING THE NEW SIGNAGE
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OUR COVID-19 RESPONSE IS TAKEN MUCH OF OUR ATTENTION THIS YEAR, OUR MARINAS REMAIN A VITAL PART OF THE COMMUNITY
PORT OF SEATTLE MARINAS ARE PUGET SOUND FAVORITES AND ARE WIDELY REGARDED AS THE PREMIER BOATING AND SAILING CENTERS OF THE NORTHWEST
ALONG WITH SHILSHOLE BAY THE PORT ALSO OWNS SALMON BAY, BELLE HARBOR, AND HARBOR ISLAND MARINAS
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THE PORT OF SEATTLE OPENED ITS FIRST RECREATIONAL FACILITY SHILSHOLE BAY MARINA IN 1962
SHILSHOLE BAY MARINA PROVIDES RECREATIONAL BOATING COMMUNITY WITH LARGE FACILITIES LOCATED IN BALLARD, THE COMMERCIAL FISHING AND RECREATIONAL BOATING HUB OF THE NORTHWEST
WE OFFER MONTHLY AND GUEST MOORAGE
THE MARINA IS THE SECOND LARGEST IN THE STATE OF WASHINGTON ACCOMMODATING OVER 1400 RECREATIONAL VESSELS
IT IS HOME TO WASHINGTON'S LARGEST LIVE ABOARD COMMUNITY WITH CAPACITY FOR 350 LIVE ABOARD VESSELS THAT ARE REPRESENTED BY OVER 600 RESIDENTS
SHILSHOLE BAY MARINA IS ALSO A VIBRANT AND ACTIVE PART OF OUR COMMUNITY
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NOW HARBOR MARINA OPENED JUNE 11TH 1996
IT IS THE ONLY MARINA IN DOWNTOWN SEATTLE AND IS OPEN TO GUESTS YEAR-ROUND TO TIE UP AND EXPLORE THE UNIQUE ENVIRONMENT OF DOWNTOWN SHOPS, RESTAURANTS, AND THE CHANGING LANDSCAPE OF THE CITY
WHILE MUCH SMALLER THAN SHILSHOLE WITH A TOTAL OF 40 SLIPS, BELLE HARBOR DOES OFFER MONTHLY MOORAGE FROM SEPTEMBER TO MAY IN THE OFF PEAK BOATING SEASON PER AN AGREEMENT WITH THE CITY OF SEATTLE
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THE PORT OF SEATTLE TOOK OWNERSHIP OF HARBOR ISLAND MARINA IN THE LATE 1990S AND THE RECREATIONAL BOATING LINE OF BUSINESS TOOK OVER MANAGEMENT IN 2004
LOCATED SOUTH OF DOWNTOWN SEATTLE ON THE DUWAMISH RIVER, HARBOR ISLAND MARINA IS CONVENIENT TO WEST SEATTLE NEIGHBORHOODS AND THE SOUTH SOUND
EIGHTY MORTGAGE SLIPS ARE AVAILABLE FOR BOTH RECREATIONAL AND COMMERCIAL USE
DOCKING AT HARBOR ISLAND IS USED PRIMARILY BY GLOBAL DIVING AND SALVAGE, THE LARGEST DIVING CONTRACTOR ON THE WEST COAST, AND WESTERN TOWBOAT A LOCAL COMPANY THAT HAS BEEN IN BUSINESS FOR THE PAST 75 YEARS
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THE PORT OF SEATTLE'S NEWEST ACQUISITION, SALMON BAY MARINA, IS MANAGED BY THE COMMERCIAL FISHING BUSINESS UNIT BECAUSE OF ITS ADJACENCY TO FISHERMAN'S TERMINAL
JUST INSIDE THE BALLARD LOCKS AND NEXT TO THE VALOR BRIDGE, IT OFFERS BOTH COVERED AND UNCOVERED FRESHWATER MONTHLY MORTGAGE AND CURRENTLY ACCOMMODATES AROUND 170 MOORAGE CUSTOMERS
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OUR FOUR FACILITIES ARE OPERATED UNDER THESE BUSINESS STRATEGIES: CUSTOMER SERVICE AND INDUSTRY ENGAGEMENT
WE RETAIN CUSTOMERS BY LISTENING, BEING RESPONSIVE AND RESPECTFUL WHILE PROVIDING EXCELLENT CUSTOMER SERVICE
FINANCIAL MANAGEMENT
WE ASSURE FINANCIAL SUSTAINABILITY AND OUR GOAL TO OBTAIN A POSITIVE NET OPERATING INCOME AFTER DEPRECIATION BY 2024
CAPITAL DEVELOPMENT
WE DEVELOP, MAINTAIN, AND OPERATE MARITIME FACILITIES TO ENSURE LONG-TERM VIABILITY AND EFFICIENCY TO MEET [INAUDIBLE]
ENVIRONMENTAL SUSTAINABILITY
WE SUPPORT THE GOAL TO BE THE GREENEST PORT IN NORTH AMERICA BY INTEGRATING ENVIRONMENTAL SUSTAINABILITY INTO PORT BUSINESS, PROCESSES, AND INVESTMENT DECISIONS
WORKFORCE DEVELOPMENT
WE CONTINUE TO DEVELOP AN ORGANIZATIONAL CULTURE THAT PROMOTES DIVERSITY, EQUITY, AND INCLUSION
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PORT MARINA'S PRIMARILY SUPPORT EVENTS RELATED TO YOUTH AND MARITIME, BOATING RENDEVOUZ, SAILING REGALIAS, AND THE LOCAL SEAFOOD INDUSTRY
WE ACCOMMODATE AND HOST THE ADVENTUROUS YOUTH PROGRAM, THE CORINTHIAN YACHT CLUB YOUTH SAILING PROGRAM, AND WE HAVE STRONG PARTNERSHIPS WITH OUR TRIBAL CUSTOMERS
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WE HAVE A VARIETY OF CAPITAL AND SMALL CAPITAL PROJECTS AND PROCESS ACROSS OUR MARINAS
THESE PROJECTS ARE FOCUSED ON DEVELOPING AND MAINTAINING OUR ASSETS AND ENHANCING OUR ROLE IN ENVIRONMENTAL SUSTAINABILITY AT SHILSHOLE BAY, WE ARE BUILDING NEW CUSTOMER SERVICE FACILITIES AND RECENTLY INSTALLED ELECTRIC VEHICLE CHARGING STATIONS
WE ARE WORKING ON THE COMMERCIAL DOCK REDEVELOPMENT AT HARBOUR ISLAND AND UPGRADING THE STANDALONE RESTROOM FACILITY AT BELLE HARBOR
THE STRUCTURAL MILES WILL BE ENHANCED WITH CATHODIC PROTECTION WRAPS TO CONTROL CORROSION
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THE CURRENT CUSTOMER SERVICE FACILITIES IN USE AT SHILSHOLE WERE CONSTRUCTED IN 1962
THEY ARE OUTDATED AND DO NOT MEET THE PORT OF SEATTLE'S STANDARD OF OWNERSHIP OR MEET UPDATED CUSTOMER NEEDS AND SATISFACTION
THE FIRST BUILDING IS SCHEDULED TO OPEN ON AUGUST 18TH
THIS IS AN 800 SQUARE FOOT STRUCTURE WITH GENDER NEUTRAL RESTROOMS AND SEPARATE SHOWER ROOMS THE TWO LARGER BUILDINGS WILL OPEN EARLY NEXT MONTH
THEY ARE EACH 2,700 SQUARE FEET WITH RESTROOMS, SHOWERS, AND LAUNDRY ROOMS INCLUDING FAMILY UNITS AND ARE ALL ADA ACCESSIBLE
THE LAUNDRY IS NEARLY DOUBLE OF WHAT'S CURRENTLY ON SITE
SOLAR PANELS WILL GENERATE 70% OF THE HEAT NEEDED FOR EACH BUILDING AND RADIANT HEAT PUMPS WILL KEEP THE SPACES DRY AND WARM/ THE NEW FACILITIES PROMOTE AND ALLOW FOR SOCIAL DISTANCING SPACING
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INCLUDED IN THE CUSTOMER SERVICE FACILITY UPGRADES ARE THE MUCH-NEEDED PARKING LOT IMPROVEMENTS
THE REPAVING AND RESTRIPING INCLUDE VISUAL MARKINGS FOR PERMIT AND NON PERMIT PARKING
SCHEDULED COMPLETION IS EARLY OCTOBER OF THIS YEAR
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THERE ARE VARIOUS PROJECTS AND PROGRAMS THAT WORK TOWARDS THE PORT OF SEATTLE GOAL OF BECOMING THE GREENEST PORT IN NORTH AMERICA
ALL OF THE MARINAS IN THE RECREATIONAL BOATING PORTFOLIO ARE GREEN MARINE [INAUDIBLE] CERTIFIED
WE ARE ALSO RECOGNIZED AS KING COUNTY ENVIRO-STARS
WE MAINTAIN OUR CERTIFICATIONS ANNUALLY, BUT WE ALSO KEEP OUR INTEREST IN ENVIRONMENTAL INNOVATION
THIS PICTURE DEPICTS THE RECENTLY INSTALLED [INAUDIBLE] AT SHILSHOLE
THE SEABIN PROJECT IS A FLOATING GARBAGE BIN THAT COLLECTS DEBRIS FROM THE SEA
IT'S DESIGNED TO BE IN PORTS, MARINAS AND YACHT CLUBS
GARBAGE AND DEBRIS ARE PULLED INTO THE BIN BY A PUMP WHICH CREATES A FLOW OF WATER
THE DEBRIS IS THEN COLLECTED IN A CATCH BAG AND EMPTIED BY STAFF
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ADDITIONAL ENVIRONMENTAL HIGHLIGHTS ARE THE LEVEL 2 ELECTRIC VEHICLE CHARGING STATIONS
THE PORT OF SEATTLE MARINE MAINTENANCE DEPARTMENT INSTALLED 8 EV STALLS IN FEBRUARY OF THIS YEAR AND WE HAVE THE POWER CAPACITY TO INCREASE THE NUMBER OF STATIONS TO 20
CUSTOMERS CAN CHARGE THEIR VEHICLES BY USE OF AN APP ON THEIR SMARTPHONES OR BY CALLING A 1-800 NUMBER FOR 24-HOUR ASSISTANCE
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THIS PICTURE WAS TAKEN ON JULY 3RD, 2019 OF STUDENTS FROM THE UPWARD BOUND YOUTH PROGRAM
LAST SUMMER THESE STUDENTS SPENT THE DAY AT SHILSHOLE MARINA LEARNING ABOUT CAREERS IN MARITIME AND MARINE SCIENCE WHILE SAILING ABOARD THE HISTORIC 100-FOOT SAILING VESSEL, THE ADVENTUROUS
IN EARLIER COMMISSION MEETINGS, WE LEARNED ABOUT THE PORT OF SEATTLE'S COMMITMENT TO WORKFORCE DEVELOPMENT AND I'M PROUD TO SAY THAT WE ARE AN ACTIVE PARTICIPANT IN REPRESENTING THAT ACTION PLAN
PRIOR TO THE HEALTH AND SAFETY EMERGENCY, WE WERE WORKING WITH HUMAN RESOURCES TO CREATE A PROGRAM TO INTRODUCE HIGH SCHOOL INTERNS TO THE VARIOUS CAREER OPPORTUNITIES IN MARITIME OPERATIONS
WE WILL SOON RETURN TO THE NEXT STEPS IN EXECUTING THAT PLAN
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THIS SLIDE PROVIDES INFORMATION FOR THE 2019 FINANCIAL PERFORMANCE
IN THE FIRST COLUMN YOU WILL SEE THE SHILSHOLE BAY MARINA IS OUR LARGEST ASSET AND RETURNS A POSITIVE NET OPERATING INCOME
HOWEVER, AS REFERENCED EARLIER, OUR GOAL IS TO RETURN ON POSITIVE NLI AMONG THE THREE RECREATIONAL BOATING ASSETS BY 2024
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FIRST SEATTLE RESOLUTION 3220 DATED NOVEMBER TWELFTH NINETEEN NINETY SIX STATES THAT THE ACTIVITY OF SHILSHOLE BAY MARINA WILL BE ACCOMPLISHED WITH THE CLEAR INTENT OF CONDUCTING THE AFFAIRS OF THE MARINA IN A BUSINESS FOCUSED MANNER BY SETTING RATES AT MARKET AND RUNNING THE OPERATION AS EFFICIENTLY AND COST-EFFECTIVELY AS POSSIBLE
EACH YEAR WE PERFORM GREAT STUDIES TO DETERMINE WHAT OUR FEES SHOULD BE BY ANALYZING OUR LOCAL COMPETITORS
THE FIRST TABLE ON THIS SLIDE SHOWS THE MARKET THAT WAS ANALYZED
THE SECOND TABLE SHOWS THE 40 FOOT SLIP COMPARISON
THE RESULTS OF THE 2019 STUDY LED TO A RECOMMENDED FIVE PERCENT INCREASE FOR 2020
STAFF WILL NOT RECOMMEND A RATE INCREASE FOR 2021 DUE TO THE CURRENT MARKET POSITIONING AND THE FINANCIAL IMPLICATIONS OF THE COVID-19 IMPACTS
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OKAY
THIS WAS A BRIEF OVERVIEW OF THE RECREATIONAL BOATING LINE OF BUSINESS
THANK YOU FOR YOUR TIME AND I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE
JO, THANK YOU VERY MUCH FOR THAT VERY INFORMATIVE PRESENTATION
I THINK WE'LL NOW HAVE QUESTIONS FROM COMMISSIONERS BEGINNING WITH THE ROLL CALL ON COMMISSIONER BOWMAN
COMMISSIONER BOWMAN FOR COMMENTS
WE CAN GO BACK TO COMMISSIONER BOWMAN
SHE MAY BE HAVING SOME TECHNICAL DIFFICULTIES
I THINK SHE'S CALLING IN
CERTAINLY
MOVING TO COMMISSIONER CALKINS
THANK YOU
GREAT PRESENTATION
I ACTUALLY DON'T HAVE ANY QUESTIONS OR COMMENTS AT THIS TIME
THANK YOU
COMMISSIONER CHO FOR YOUR COMMENTS AND QUESTIONS
YEAH REAL QUICK
FIRST, THANK YOU SO MUCH FOR THAT GREAT PRESENTATION, JO
AWESOME
MY QUESTION IS WITH REGARDS TO HOW THE BOAT INDUSTRY IS REACTING TO COVID
I KNOW THAT WE'RE IN THE MIDDLE OF SUMMER SO LOTS OF PEOPLE GOING ON THE WATER, BUT I'M WONDERING IF YOU EXPECT ANY MORE VACANCIES IN A MARINAS, YOU KNOW, PEOPLE WINDING DOWN THEIR OCCUPANCY OF OUR MARINAS AS A RESULT OF COVID OR ANY OTHER MOVEMENTS IN THE MARKET THAT YOU EXPECT TO SEE
COMMISSIONER CHO, WHAT I CAN TELL YOU IS THAT SINCE BOATING REOPENED WE HAVE SEEN AN UPTICK IN OUR ACTIVITY AT SHILSHOLE BAY AND BELLE HARBOR FOR OUR GUEST MOORAGE, AND OUR MONTHLY MOORAGE CUSTOMERS ARE COMING OUT TO THEIR BOATS AS WELL
I HAD A CONVERSATION WITH PETER STRAIGHTEN, THE PRESIDENT OF NOTA YESTERDAY TALKING ABOUT THESE VERY ISSUES
RIGHT NOW WE DON'T REALLY KNOW WHAT THE FUTURE OF BOATING WILL BE LIKE WITH THE EFFECTS OF COVID, BUT AT THIS TIME WE ARE SEEING AN UPTICK
GREAT
THANKS
GOING BACK VERY QUICKLY TO COMMISSIONER BOWMAN
GREAT
THANK YOU
UM JO, CONGRATULATIONS ON THE NEW JOB AND GLAD TO HAVE YOU OVER HERE ON THE BOATING SIDE OF THE HOUSE
MY QUESTIONS ARE REALLY MORE ABOUT THE FINANCIALS AND STAFF CAN GET BACK TO ME
SPECIFICALLY TO SLIDE NUMBER 21
I'D REALLY LIKE TO UNDERSTAND, AND I'M ASSUMING MY COLLEAGUES WOULD AS WELL, THE FINANCIALS FOR ALL OF THESE MARINAS OVER A MORE EXTENDED PERIOD OF TIME, I'M JUST GOING TO SAY THE LAST 10 YEARS
IT'S HARD WHEN I'M ONLY SEEING THE 2019 FINANCIAL PERFORMANCE, BUT I WOULD IMAGINE WE WOULD ALL BE CONCERNED THAT OUR REVENUE, FOR EXAMPLE FOR BELLE HARBOR MARINA, IS SLIGHTLY UNDER 500,000 AND YET OUR TOTAL EXPENSES ARE ALMOST THREE TIMES THAT, SIMILAR TO HARBOR ISLANDS
NOT QUITE THE SAME
HARBOR ISLAND, 460 THOUSAND DOLLARS IN REVENUE AND YET OUR EXPENSES ARE 627,000
SO I'D LIKE TO UNDERSTAND OVER WHAT PERIOD OF TIME OUR EXPENSIVES HAVE BEEN GREATER THAN OUR REVENUE
I APPRECIATE VERY MUCH, JO, YOUR COMMENTS ABOUT BRINGING THEM ALL, I THINK YOU SAID REVENUE-NEUTRAL WAS THE TERM THAT YOU USED, BY 2024, BUT I'D REALLY LIKE TO HAVE MORE DETAILED INFORMATION ABOUT WHY THE EXPENSES ARE SO HIGH AND THEN WHAT SPECIFIC ACTIONS WE'RE TAKING TO BRING THOSE THAT ARE UNDERPERFORMING, SPECIFICALLY BELLE HARBOR AND HARBOR ISLAND, UP TO AT LEAST A BREAK EVEN
AND THEN THE SECOND QUESTION ABOUT HARBOR ISLAND IN PARTICULAR
I'M CURIOUS WHAT WE'RE GOING TO BE DOING ABOUT THE WEST SEATTLE BRIDGE CLOSURES AND HOW STAFF ANTICIPATES THAT AFFECTING OCCUPANCY AT THE MARINA
MY UNDERSTANDING IS THAT THIS IS A MONTHLY MOORAGE, PLEASE CORRECT ME IF I'M WRONG
I DON'T KNOW HOW MANY LONG-TERM MOORAGE CONTRACTS WE HAVE
THIS IS A MONTHLY MORTGAGE
YES, GREAT
SO, YOU KNOW, AGAIN I'D ASK AS WE'RE GOING THROUGH THE 2021 BUDGET AND THINKING AHEAD THAT WE'RE REALLY CONSIDERING WHAT ACCESS TO THAT MARINA IS GOING TO LOOK LIKE AND WHAT IMPACT THAT'S GOING TO HAVE ON ITS FINANCES
AND THEN LAST AGAIN, I'D LIKE TO GET SOME REALLY DETAILED INFORMATION ABOUT THE OPERATING EXPENSES FOR EACH OF THE MARINAS
SO COMMISSIONER
THIS IS STEPHANIE JONES STEBBINS
THANK YOU SO MUCH FOR THOSE COMMENTS
AND I ALSO WANT TO THANK YOU FOR REQUESTING THIS PRESENTATION
IT REALLY GIVES US AN OPPORTUNITY TO SHARE, ESPECIALLY WITH THE NEWER COMMISSIONERS, SOME INFORMATION ABOUT THIS LINE OF BUSINESS THAT PERHAPS DOESN'T GET AS MUCH ATTENTION FROM THE COMMISSION AND CERTAINLY AN OPPORTUNITY FOR JO TO SHARE HER VISION STARTING AS A SENIOR MANAGER OF THIS LINE OF BUSINESS
IN RESPONSE TO THE QUESTION ABOUT EXPENSES, I WANT TO ADDRESS A COUPLE THINGS
SO ONE, REMEMBER THAT OUR EXPENSES INCLUDE NOT ONLY OUR DIRECT EXPENSES
SO THE FOLKS LIKE JO AND HER STAFF WHO ARE OUT AT THE MARINAS WORKING
IT ALSO INCLUDES, THOSE EXPENSE NUMBERS, ALL OF OUR CORPORATE COSTS, OUR ALLOCATED SHARE OF THOSE THINGS
ABOUT A THIRD OF THE COST THAT YOU SEE THERE ARE, YOU KNOW, A THIRD IS A DIRECT EXPENSES, A THIRD AS THE ALLOCATED EXPENSES, AND THE THIRD IS A OUR DEPRECIATION COST
SO THERE ARE
IT'S NOT JUST THE COST AT THE FACILITY
IT'S ALSO WHAT WE DO HERE AT CORPORATE AND PART OF WHAT IT COST TO HAVE A FIVE-MEMBER COMMISSION, WHAT IT COSTS TO HAVE AN ACCOUNTING DEPARTMENT, AN HR DEPARTMENT
SO ALL OF THAT IS PART OF THAT
WITH RESPECT SPECIFICALLY TO AND OVER THE LAST, I WILL SAY I'VE BEEN IN THIS JOB TWO YEARS, THERE HAS BEEN A SPECIFIC FOCUS ON KEEPING THE EXPENSE GROWTH LOWER THAN REVENUE GROWTH AT THE SPECIFIC FACILITIES
AND ALSO JUST TO ADD ONE MORE THING THAT BELLE HARBOR MARINA IN PARTICULAR, THAT MARINA WAS PART OF THE DEVELOPMENT CONDITIONS AT PIER 66
WE CANNOT HAVE MONTH-TO-MONTH AGREEMENTS FOR AT LEAST PART OF THE YEAR
IT HAS TO BE GUEST MOORAGE
WITH SOME OF THE SPECIFIC CONSTRAINTS ON THERE AND IN ADDITION TO THE DEPRECIATION, THAT'S PART OF THE REASONS WHY THE REVENUES ARE LOWER THAN EXPENSES
BUT WE ARE HAPPY TO PROVIDE A MORE DETAILED ACCOUNTING OF THOSE OVER TIME
BUT THANKS FOR THOSE REALLY EXCELLENT QUESTIONS
THANKS STEPHANIE
I REALLY APPRECIATE THAT AND I AM VERY WELL AWARE THAT THIS CENTRAL SERVICES LINE ITEM IS A HEAVY BURDEN ON ALL OF THE DEPARTMENTS
AND AGAIN, I JUST WANTED TO, AS YOU PROVIDE MORE DETAIL, I THINK IT IS BOTH FOR SOME OF MY FELLOW COLLEAGUES THAT HAVEN'T HAD AS MUCH UNDERSTANDING YET OF HOW WE DO OUR BUDGETS AND HOW THOSE COSTS ARE ALLOCATED AND ALSO FOR THE PUBLIC
BECAUSE IF YOU JUST SEE THIS SLIDE, IT'S, YOU KNOW, IT CAN APPEAR PRETTY DISTURBING
EVEN WITH TAKING OUT A $390,000 CENTRAL SERVICES ALLOCATION ON BELLE HARBOR, THAT'S STILL 910 ROUGHLY THOUSAND DOLLARS IN EXPENSES WHICH AGAIN IS ALMOST DOUBLE THE REVENUE
SO I THINK WE JUST NEED TO TAKE A HARD LOOK AT ALL OF OUR LINES OF BUSINESS AND YOU KNOW, I THINK JUST HAVING MORE EXPOSURE TO IT AS YOU MENTIONED
I REALLY APPRECIATE THE STAFF BEING WILLING TO MAKE THIS PRESENTATION TODAY
WE DON'T TALK ABOUT THE RECREATIONAL BOATING VERY MUCH
JO'S EARLIER COMMENTS THAT WE HAVE SEEN AN UPTICK
I'M NOT SURPRISED, QUITE FRANKLY
AND SO AGAIN REALLY LOOKING FORWARD TO HER LEADERSHIP MOVING FORWARD
AND AS YOU SAID HER VISION OF HOW TO OPERATE THESE MARINAS ALONG WITH KENNY AND THE REST OF YOUR STAFF
I THINK AS WE'RE CONSIDERING THE 2021 BUDGET, YOU KNOW, WE REALLY NEED TO BE THINKING ABOUT WHERE ARE WE A FEW YEARS FROM NOW
NOT JUST IN 2021, BUT BUT LOOKING OUT AND WE'RE SEEING A PRETTY SUBSTANTIAL SHORTFALL FOR THE PORT OF SEATTLE EVEN OUTSIDE OF THE AIRPORT
AND SO AS WE'RE DOING THAT, I THINK AS I'VE SAID BEFORE, I HOPE WE'LL TAKE THE OPPORTUNITY TO LOOK AT OUR LINES OF BUSINESS, QUESTION OUR ASSUMPTIONS AND REALLY JUST LOOK AT PERHAPS NEW WAYS OF DOING BUSINESS
SO THANK YOU FOR CONSIDERING THOSE
OKAY, THANK YOU COMMISSIONER BOWMAN
CONTINUE WITH COMMISSIONER QUESTIONS AND COMMENTS
THANK YOU AND MOVING TO COMMISSIONER FELLEMAN
HI, THANKS SO MUCH, JO AND I REALLY APPRECIATED THE TOUR YESTERDAY AND SEEING ALL THE GREAT WORK THAT'S GOING ON DOWN AT A SHILSHOLE IN PARTICULAR AND THOSE NEW REST FACILITIES ARE EXTRAORDINARY AND THE SUSTAINABILITY FACTORS OF THEM WERE REALLY IMPRESSIVE
I LOOK FORWARD TO HAVING, YOU KNOW, A FIRST FLUSH PARTY HERE IN THE NOT-TOO-DISTANT FUTURE
I THINK IN TERMS OF THE ROLE OF THE PORT AS BEING A MARINA MANAGER OWNER I THINK IT'S REALLY IMPORTANT TO UNDERSTAND, I THINK IMPORTANT TO EMPHASIZE THE VALUE OF THE ROLE THAT WE PLAY TO ACCESSING THE WATER
JUST IN GENERAL, FOR THE BROADER PUBLIC TO BE ABLE TO HAVE THIS CONNECTION TO THIS, YOU KNOW, UNIQUE NATIONAL INTERNATIONAL ASSET WE CALL PUGET SOUND AND IT REALLY IS A BOATERS PARADISE IN A WAY IN COMPARISON TO MANY OTHER PLACES AROUND THE WORLD
IT'S REALLY A HUGE DRAW TO THE AREA AND HAVING SIGNIFICANT ECONOMIC SIGNIFICANCE BOTH IN TERMS OF THE BOATING COMMUNITY AS WELL AS FROM THE TOURISM IT DRAWS
AND YOU KNOW, AND IT SAID OFTEN THAT THE RECREATIONAL BOATING IS THE GATEWAY DRUG TO THE MARITIME INDUSTRY
AND SO AS YOU SO WELL NOTED, THE VARIOUS PROGRAMS THAT YOU ARE HOSTING THERE ARE VERY TARGETED TO GIVING KIDS EXPOSURE AND STUFF
MORE BROADLY YET, GETTING PEOPLE OUT ON THE WATER I SEE AS, YOU KNOW, A CRITICAL FIRST STEP BEFORE THEY CAN FIND THEIR INTEREST TO GETTING INTO A CLASSROOM
I THINK IT'S VERY IMPORTANT
I THINK THE POINT THAT YOU RAISED ABOUT THIS INFLUX OF BOATING ACTIVITY, ONE OF THE THINGS THAT I WAS ALWAYS SURPRISED WHEN SPEAKING TO STEPHANIE IN THE PAST ABOUT OUT LIKE A PROGRAM THAT EVERETT DOES AS A REVENUE GENERATOR IS THAT THEY SORT OF HOT BUNK THE SLIPS SO THAT WHEN PEOPLE GO OFF FOR THE MONTH OR SOMETHING FOR THE SUMMER, THEY CAN RENT THE SLIPS ON TOP OF THAT AND WHAT I UNDERSTOOD WAS THAT WE WEREN'T DOING THAT AT SHILSHOLE BECAUSE THERE WAS ALWAYS ROOM IN THE TRANSIENT MOORAGE SO THAT WE DIDN'T HAVE THAT NEED TO FILL UP ADDITIONAL SLIPS
YOU KNOW, ONE OF THE BENEFITS FOR THE PROGRAM IN EVERETT WAS THAT THE TENANT OF THAT SLIP WAS GETTING A PIECE OF THAT ACTION
SO THERE WAS SOME RENT REDUCTION ASSOCIATED WHILE THERE'S ADDITIONAL RENT REVENUE FOR THAT HUGE COMMISSION OFFICE EXPENSE WE MENTIONED
[LAUGHTER] FOR THE PORT ITSELF AND THERE'S ALSO THE BENEFITS OF THE TENANT
AND YOU KNOW, I THINK IT'S A TWO-FER BUT THERE WAS SOME ADDITIONAL CHALLENGES ASSOCIATED WITH MANAGING SOMETHING LIKE THAT
I WOULD LIKE TO SEE US EXPLORE THAT AS A GREATER OPPORTUNITY FOR NEW REVENUE AS WELL AS BENEFITS TO THE TENANTS
AND I DO REALLY APPRECIATE SEEING THOSE NEW LADDERS GOING IN
THEY WERE VERY INNOVATIVE
AND THEN I THINK ALSO THE EDUCATIONAL ASPECTS
IT WAS GREAT WE WERE DOING THE THING ON EDUCATING PUBLIC ABOUT BOATING AROUND THE KILLER WHALES
THIS BOATING SEASON HAS SEEN, UNFORTUNATELY, QUITE A FEW DEATHS ALREADY IN THE COMMUNITY
WE HAVE TO BE REALLY CONSCIOUS ABOUT BOATER SAFETY AND BOTH AROUND WILDLIFE AS WELL AS AROUND LIFE JACKETS AND THINGS LIKE THAT
SO I SEE THIS AS A PUBLIC SERVICE LIKE MUCH IN THE WAY WE DO THE FISHERMAN'S TERMINAL
IT NEEDS TO GET OBVIOUSLY MORE MORE PROFITABLE, SHALL WE SAY, ALTHOUGH WE DON'T DO PROFITS
I DO BELIEVE THAT IT HAS TO BE LOOKED AT AS MORE THAN JUST THE DOLLAR AND CENTS THING, BUT IT IS OBVIOUSLY HAS ROOM FOR THAT ECONOMIC IMPROVEMENT
I THINK IT'S IN COMPETENT HANDS WITH YOU AT THE HELM, AND I LOOK FORWARD TO KEEPING IN TOUCH, AS A FORMER TENANT AS LIVEABOARD AT SHILSHOLE, I'M A GREAT FAN AND I REALLY APPRECIATE THE WORK THAT YOU'VE BEEN DOING TO MAKE IT EVEN BETTER
SO, THANK YOU
THANK YOU
THANK YOU COMMISSIONER FELLEMAN
COMMISSION PRESIDENT, COMMISSIONER CHO HAD A FOLLOW-UP COMMENT
COMMISSIONER CHO
REAL QUICK, JO, YOU HAD MENTIONED THAT THERE WAS AN UPTICK IN MARINA ACTIVITY
WAS THAT AN UPTICK RELATIVE TO LAST YEAR, YEAR OVER YEAR, OR RELATIVE TO WHEN COVID HIT? SO I WOULD SAY RELATIVE TO THE FACT THAT DURING COVID WE DIDN'T HAVE ANYONE COMING OUT AND WE THOUGHT THAT WE WERE GOING TO HAVE A REALLY LOW OCCUPANCY BOATING SEASON
BUT AS SOON AS THE GOVERNOR OPEN BOATING, WE SAW PEOPLE JUST FLOCKING TO THEIR BOATS, WHICH MAY BE BECAUSE IT IS THE ACTIVITY THAT YOU CAN DO OUTDOORS AND STILL ENJOY, YOU KNOW, SOCIAL DISTANCING BECAUSE YOU'RE OUT ON YOUR BOAT
SO IT WAS UNEXPECTED
WE DID NOT EXPECT TO SEE EVERYONE FLOW INTO THE MARINAA AS MUCH AS THEY DO
THANK YOU SO MUCH
THANK YOU
AND THEN COMMISSIONER STEINBREUCK FOR YOUR COMMENTS
THANK YOU
AND I WANT TO THANK COMMISSIONER BOWMAN FOR RECOMMENDING THAT THIS TOPIC BE BROUGHT TO THE FULL COMMISSION IN THIS PUBLIC MEETING
I THINK THAT THE AREA OF OUR RECREATIONAL BOATING AND I WOULD SAY OUR MARINAS AND THEIR MANAGEMENT OPERATION DOES TEND TO GO UNDER THE RADAR SOMEWHAT UNTIL RATES RAISED OR SOME OTHER ISSUE ARISES THAT IS OF CONCERN TO THE TENANTS WE SERVE SO THIS IS VERY IMPORTANT TO MEANINGFULLY HERE
JO, THANK YOU FOR THE DETAILED PRESENTATION
IT WAS EXCELLENT
I DO HAVE SOME QUESTIONS AND I SHARE SOME OF COMMISSIONER BOWMAN'S INTERESTS AND CONCERNS REGARDING THE HIGH OPERATING COSTS OVER REVENUES
AND I KNOW THAT COMPARISONS WITH OTHER MARINAS, PUBLIC AND PRIVATE, ARE NOT NECESSARILY APPLES FOR APPLES
MAY HAVE DIFFERENT BUSINESS MODELS, THEY MAY NOT BE PUTTING THE SAME INTO THE CAPITAL DEPRECIATION ACCOUNTS, THEY MAY NOT HAVE 500 LIVEABOARDS THAT WE DO I THINK AT SHILSHOLE ALONE
SO THERE ARE DIFFERENT FACTORS HERE, BUT NEVERTHELESS I THINK IT'S IMPORTANT THAT WE REALLY LOOK DEEPLY INTO HOW WE'RE MANAGING THESE FACILITIES IN THE RED AND WHAT ARE THE DRIVERS THERE AND WHAT NEEDS TO CHANGE IF ANYTHING AND THAT'S ALWAYS SORT OF A FLASHPOINT, OF COURSE WITH OUR TENANTS WHO FEAR INCREASED RATES
I THINK HAVING SOME HISTORICAL DATA WOULD BE HELPFUL AS WELL IN TERMS OF HOW RATES HAVE CHANGED AND BEEN INCREASED OVER THE YEARS, HOW THE EXPENSE LINES HAVE CHANGED OVER THE YEARS, AND WHAT ARE THE DRIVERS FOR THE PERSISTENT, LET'S SAY, EXPENSE OVER REVENUE PICTURE THAT WE'RE SEEING IN MOST OF THESE MARINAS
TO COMMISSIONER FELLEMAN'S POINT, I DON'T SEE THE COMPARISON OF FISHERMAN'S TERMINAL ON THE SAME FOOTING
THAT IS A COMMERCIAL FACILITY THAT HAS HISTORICALLY SUPPORTED OUR NORTH PACIFIC FISHING FLEET, WHICH IS INDUSTRY AND JOBS AND ECONOMIC BENEFIT VERSUS MARINAS WHICH, ASIDE FROM THE LIVEABOARDS WHOSE PRIMARY HOUSING MAYBE THERE, ARE SERVING A MORE RECREATION AND LEISURE ACTIVITY WITH BOATERS, WHICH IS A GREAT THING AND WE ARE THE BOATING CAPITAL PARADISE
I WISH THE WATER WERE A LITTLE BIT WARMER FOR AN OCCASIONAL SWIM, BUT IT'S NOT
SO
BUT I DO THINK THAT WE NEED TO LOOK DEEPLY INTO HOW OUR EXPENSE LINES ARE CONTRIBUTING TO THE YEAR-OVER-YEAR BEING IN THE RED AND AT THE SAME TIME THE CAPITAL RESERVE I THINK IS AN IMPORTANT AREA AS WELL BECAUSE I THINK WE HAVE TO MAINTAIN A LEVEL OF CAPITAL DEPRECIATION RESERVE THAT ENSURES THAT WE'RE DOING THE NECESSARY MAJOR MAINTENANCE AND UPKEEP THAT WILL NOT COME BACK SO THAT THEY WON'T BECOME MAJOR EXPENSE ITEMS DOWN THE ROAD
I THINK THAT'S ABOUT ALL I HAVE TO COMMENT ON
I WOULD LIKE TO UNDERSTAND THE FINANCIAL PICTURE AND IF IT'S A MATTER OF POLICY THAT WE OPERATE THESE IN THE RED THAN I THINK WE HAVE TO ACKNOWLEDGE THAT
BACK TO COMMISSIONER FELLEMAN'S POINT, THERE IS A SIGNIFICANT PUBLIC BENEFIT
PARKS ARE NOT EXPECTED TO OPERATE, YOU KNOW, WITH A COMPLETE FLAT COST
[LAUGHTER] WE DON'T CHARGE FOR THE USE OF PUBLIC FACILITIES IN MANY AREAS SO I DO THINK THAT'S AN IMPORTANT NOTE TO MAKE REGARDING HOW WE OPERATE AND OWN THESE FACILITIES
JO, DO YOU HAVE ANY CLOSING COMMENTS YOU'D LIKE TO MAKE OR ANY FOLLOW-UP TO ANY OF THE QUESTIONS AND COMMENTS YOU'VE HEARD BEFORE WE MOVE ON? SORRY, I WAS MUTED
THERE WERE QUITE A FEW DOGS OUTSIDE OF MY WINDOW
NO, I JUST LIKE TO THANK YOU FOR THE OPPORTUNITY TO BRING YOU AN OVERVIEW OF OUR RECREATIONAL BOATING LINE OF BUSINESS
I'VE ONLY BEEN HERE EIGHT, NINE MONTHS, BUT I AM ENJOYING MYSELF
THERE'S A LOT OF WORK TO BE DONE
I HAVE A GREAT STAFF
THEY'RE ALL READY FOR IT
SO WE WILL GATHER THOSE NUMBERS AND WE'LL GET THE FINANCIAL TO YOU
I'M JUST LOOKING FORWARD TO MAKING SOME POSITIVE CHANGES HERE
EXCELLENT
EXCELLENT
[CROSSTALK] [CROSSTALK] KENNY? THANK YOU VERY MUCH
I JUST WANTED TO LEAVE THIS PRESENTATION WITH ASSURING THE COMMISSION THAT YOU WILL HAVE CONFIDENCE IN OUR DILIGENT MANAGEMENT OF THESE FACILITIES AS WELL AS OUR EXPECTATIONS TO BE MARKET LEADERS
OVER THE PAST 20 YEARS THAT I'VE BEEN A PART OF THE MARITIME DIVISION MANAGING FISHERMAN'S TERMINAL AND NOW SHILSHOLE BAY MARINA, WE'VE ALWAYS SOUGHT TO BE MARKET LEADERS
SO THAT'S WHY WE DO OUR ANNUAL STUDY, OUR MARKET RATE STUDY
AND THERE IS A COST OF OWNERSHIP AND AS JO MENTIONED OPENING UP THE PRESENTATION, SHILSHOLE WAS THE FIRST RECREATIONAL ASSET THAT THE PORT TOOK OWNERSHIP OF SO WHEN THE BIG CAPITAL DEVELOPMENT TOOK PLACE IN THE 90S, THE RESTROOM FACILITIES WERE PRESERVED AND THEY WERE AGAIN 1962 FACILITIES
SO IT WAS OVERDUE AND WHAT COMES WITH THE COST OF OWNERSHIP IS AS YOU KNOW, BEING IN THE ARCHITECTURAL FIELD THAT YOU'RE IN, THERE'S A COST OF DEPRECIATION
SO WE'RE TRYING TO TURN THAT RED INTO BLACK WITH THE DIRECTION THAT WE'RE HEADING THERE
AND YOU HAVE TO FORGIVE NEXT YEAR BECAUSE OF THE ECONOMIC DOWNTURN AS A RESULT OF COVID, WE WON'T BE RAISING OUR RATES, BUT WE DO WANT OUR RECREATIONAL FACILITIES TO BE MARKET LEADERS AND TO BE REVENUE PRODUCERS FOR THE PORT OF SEATTLE
SO THAT'S WHAT I WOULD LIKE TO CLOSE WITH
ALL RIGHT
THANK YOU KENNY
COMMISSIONER FELLEMAN
DID YOU HAVE A QUESTION? YEAH
I THINK THERE'S TWO THINGS
ONE, I'D LIKE TO RESPOND TO YOUR COMMENT ABOUT FISHERMAN'S TERMINAL BECAUSE I WASN'T TRYING TO MAKE A DIRECT ANALOGY
I WAS SUGGESTING THAT THERE ARE A LOT OF ECONOMIC SPIN-OFFS FOR OUR REGION LIKE THE MAINTENANCE OF FISHING BOATS, THERE'S THE MAINTENANCE OF RECREATIONAL BOATS AND THE ASSOCIATED SHIP RIGHTS AND ALL THE OTHER TALENTS THAT THAT COMMUNITY SUPPORTS IS ANALOGOUS ALTHOUGH IT'S NOT A COMMERCIAL OPERATION
BUT IT'S ALSO VERY IMPORTANT TO REMEMBER THAT THERE'S A BIG DIFFERENCE IN THE WHEREWITHAL OF PEOPLE THAT OWN BOAT SAYS AS LIKE A TOY VERSUS THOSE THAT ARE LIVEABOARDS AND IT'S NOT A AFFLUENT COMMUNITY
IT IS SOMEWHAT, YOU KNOW, INEXPENSIVE RELATIVELY SPEAKING
BUT HAVING SAID THAT, HAVING LIVED ON THE DOCKS THERE FOR A WHILE, PEOPLE WOULD OFTEN POINT TO HOW MUCH LESS EXPENSIVE IT IS TO BE IN EVERETT OR IN EDMONDS
AND SO AS WE LOOK AT OUR MARKET POTENTIAL IT'S IMPORTANT TO LOOK AT THESE OTHER PLACES THAT EXIST
THE ONE THING THAT IS TO BE KNOWN IS IT'S ONE THING TO OWN A BOAT, BUT IT'S ANOTHER THING TO HAVE A SLIP AND THERE IS WAITING LINES
I MEAN SHILSHOLE RIGHT NOW, WHAT DO WE HAVE? A TWO-YEAR WAITING LIST TO HAVE A SLIP? I MEAN IT IS A REALLY INCREDIBLY VALUABLE COMMODITY THAT WE HAVE AND IT'S JUST GOING TO BE VARIOUS CLEVER THINGS THAT I THINK WE'RE GOING TO HAVE TO DO TO MAKE IT MORE PROFITABLE
AND SOME OF THAT MIGHT BE LIKE UPLAND DEVELOPMENT LIKE WE HAVE IT SALMON BAY
WE HAVE ALL THAT UPLAND ROOM AND THE SAME THING WITH FISHERMAN'S TERMINAL
WE HAVE TO LOOK AT THESE AS SYSTEMS AND THE FACT THAT WE DON'T HAVE A RESTAURANT YET AT SHILSHOLE IS SOMETHING THAT I KNOW WE'VE BEEN WORKING ON A LONG TIME, BUT WE USED TO HAVE THESE ADDITIONAL REVENUE SOURCES
IT'S SORT OF LIKE OUR ADR IS TO OUR AIRPORT
WE NEED TO GET THOSE NON-SLIP REVENUES GOING AS WELL AS THESE OTHER THINGS
SO ANYWAY, THANK YOU SO MUCH FOR THE PRESENTATION AND THANK YOU STEPHANIE FOR ASKING US TO HAVE IT
JO, KENNY, THANKS AGAIN
WE'LL LOOK FORWARD TO MORE AS WE CONTINUE FORWARD ON THESE ISSUES
SO WITH THAT I'D LIKE TO MOVE ON TO THE NEXT ITEM, WHICH IS A BRIEFING ON THE SECOND QUARTER FINANCIAL REPORTS
WE'LL TURN TO EXECUTIVE DIRECTOR METRUCK TO INTRODUCE THAT TOPIC
THANK YOU COMMISSIONER STEINBREUCK AND MOVING TO THIS
THIS IS OUR SECOND Q2 FINANCIAL PERFORMANCE BRIEFING AND I THINK THIS HAS BEEN A QUARTER BRIEFING UNLIKE WE'VE EVER HAD IN MANY MANY YEARS HERE WITH THE COVID PANDEMIC HITTING US AND THE IMPACT ON THE BUSINESS LINES AND OUR FIRST REACTIONS TO IT
IF COMMISSIONERS REMEMBER, WE DID UNDERTAKE A REVISED BUDGET WITH A LOT OF ACTIONS REDUCING BOTH OUR CAPITAL AND OUR OPERATING EXPENSES GOING FORWARD THE TUNE OF US 70 MILLION DOLLARS
WITHIN THIS ALSO WITH THE REDUCTIONS BOTH ON AVIATION AND IN THE MARITIME AND EDD, THE REDUCTIONS IN OPERATIONS THERE AFFECTING REVENUES COMING IN
AND OF COURSE, YOU'LL SEE IN THESE AS WE REVIEW THIS THE IMPACT OF FINANCIAL AID IN THE FORM OF THE CARES ACT AND THE MONEY RECEIVED IN AVIATION TO ASSIST US WITHIN THAT
SO WE MADE SOME ASSUMPTIONS EARLY ON
YOU'LL SEE AS WE ADJUST TO THIS, ONE OF THE THINGS WE'LL BE LEARNING FROM THIS IS THERE'S SO MUCH UNCERTAINTY THAT WAS HAPPENING AS WE SET UP OUR RESPONSE TO COVID ADJUSTING OUR FINANCIAL SITUATION
YOU'LL SEE THOSE
THIS WILL HELP INFORM IN THIS FURTHER FOR THE SECOND QUARTER THAT WE ROLL INTO THE THIRD QUARTER THEN THE FOURTH QUARTER
WE'LL ALSO SET UP HOW WE'RE PERFORMING AGAINST THESE REVISED BUDGETS AND YOU'LL SEE SOME OF THAT READ OUT TODAY FROM THE GROUP AS WE GO THROUGH IT
SO WITH THAT I'M GOING TO TURN IT OVER TO OUR CFO DAN THOMAS TO INITIALLY KICK THIS OFF AND THEN FIRST LOOK AT AVIATION WITH MORGAN ANDERSON AND THEN WE'LL TURN TO MARITIME AND THE EDD WE'LL HEAR FROM STEPHANIE JONES STEBBINS AND DAVE MCFADDEN AS WELL AS KELLY SUPINE AND THEN MICHAEL STRONG WILL TALK ABOUT THE CENTRAL SERVICES AS WELL AS WE DO THAT
SO WITH THAT I'M GOING TO TURN OVER TO DAN THOMAS TO SET THE STAGE AS WE GO THROUGH THIS AND THEN TO ANY COMMISSION QUESTIONS AS WE FOCUS ON GOING FORWARD WITH THE PROCESS
SO I'LL TURN IT OVER TO DAN
THANK YOU, STEVE
CAN YOU HEAR ME? CAN YOU HEAR ME? YEAH, SO I GUESS IF WE CAN MOVE TO THE FIRST SLIDE, PLEASE
SO OBVIOUSLY AS STEVE HAD MENTIONED EARLIER IN HIS EXECUTIVE DIRECTOR'S REPORT, COVID-19, THE PANDEMIC HAS CONTINUED TO HAVE SIGNIFICANT IMPACTS ON PORT OPERATIONS AND FINANCIAL PERFORMANCE AND SEA-TAC AIRPORT HAS BEEN EXPERIENCING THE MOST SIGNIFICANT IMPACTS IN GENERAL
AIRPORT PASSENGER LEVELS EARLIER IN THE YEAR DROPPED DRAMATICALLY
IN APRIL OUR ENPLANEMENTS WERE DOWN 94% COMPARED TO THE PRIOR YEAR APRIL NUMBERS
WE HAVE SEEN SOME STEADY IMPROVEMENT SINCE THEN
IN JUNE NUMBERS WERE DOWN ONLY 78 PERCENT COMPARED TO THE PRIOR YEAR AND WHILE WHEN THIS PRESENTATION WAS PUT TOGETHER WE DIDN'T HAVE OUR JULY NUMBERS, BUT WE ACTUALLY JUST GOT OUR JULY NUMBERS AND IT'S LOOKING AT FOR JULY OUR ENPLANEMENTS WERE DOWN ABOUT 72 PERCENT COMPARED TO THE PRIOR YEAR
SO WE HAVE BEEN SEEING SOME STEADY IMPROVEMENT IN THE PASSENGER ENPLANEMENTS
AS YOU'RE WELL AWARE BECAUSE OF THE PANDEMIC THE ALASKAN CRUISE SEASON FOR THIS YEAR HAS BEEN CANCELED
AGAIN LIKE THE AIRPORT AND AIRLINE INDUSTRY, WE DO EXPECT THE CRUISE INDUSTRY TO BE PROBABLY A MULTI-YEAR RECOVERY
AND THEN AS YOU'RE WELL AWARE, WE INSTITUTED A NUMBER OF EARLY ACTIONS THIS YEAR TO HELP MITIGATE SOME LOSS IN REVENUE AND CASH FLOW AND THAT INCLUDES THE COMBINED 70 MILLION DOLLARS IN EXPENSE AND CAPITAL REDUCTIONS AND DEFERRALS AND THESE FORM THE BASIS OF THE REVISED BUDGET THAT WE ARE NOW TRACKING AGAINST
SO AS STEVE MENTIONED, WE ARE NOW TRACKING AGAINST THAT BUDGET AND THAT'S WHAT YOU'LL BE SEEING IN TODAY'S PRESENTATION
WE HAVE INCLUDED THE APPROVED BUDGET FOR REFERENCE, BUT THE COMPARISON IS AGAINST THE REVISED BUDGET
I WOULD SAY WE'RE TRACKING REASONABLY WELL AGAINST THE REVISED BUDGET SO FAR, ALTHOUGH YOU'LL SEE THAT THE AIRPORT REVENUE NUMBERS IS A BIT MORE COMPLICATED OF A STORY
AND BORGEN ANDERSON WILL GO INTO A LITTLE BIT MORE DETAIL BECAUSE BACK WHEN WE PREPARED THE REVISED BUDGET, WE HAD EARLIER ENPLANEMENT PROJECTIONS
ALSO WE HADN'T REVISED OUR REVENUES TO REFLECT THE IMPACT OF THE CARES ACT WHICH AS YOU KNOW, WE RECEIVED A HUNDRED NINETY TWO MILLION DOLLARS OF A GRANT AWARD UNDER THE CARES ACT
WE'VE ACTUALLY BEEN REIMBURSED AND WE HAVE RECEIVED 75 MILLION DOLLARS RECENTLY
SO IT'S A GOOD START
AND IT'S A COMBINATION OF THE CARES FUNDING AND THE CAPITAL AND EXPENSE REDUCTIONS AND ALSO THE FACT THAT WE STARTED THE YEAR WITH PRETTY HEALTHY CASH RESERVES
STEVE'S BEEN INSTRUMENTAL IN HELPING US WEATHER THIS STORM
BUT AS STEVE HAS REFERENCED, WE'RE STILL OPERATING IN AN ENVIRONMENT OF SIGNIFICANT UNCERTAINTY REGARDING THE TRAJECTORY OF THE VIRUS AND THE ATTENDANT ECONOMIC IMPACTS
THINGS CERTAINLY COULD GET WORSE AS WE GO INTO THE LATER PART OF THE YEAR
SO AGAIN AN UNDERSCORE IS THAT NEED TO BE VERY VERY CONSERVATIVE IN OUR APPROACH TO PREPARING THE 2020 BUDGET
2021 BUDGET
SORRY
SO WITH THAT I'D BE HAPPY TO TURN IT OVER TO BORGEN ANDERSON TO BEGIN ON THE AIRPORT PRESENTATION
OKAY
IF WE COULD MOVE ON TO THE NEXT SLIDE, PLEASE
OKAY
DAN SAID THE AIRPORT WAS A LITTLE MORE COMPLICATED AND SO MY GOAL HERE IS TO EXPLAIN WHY THAT APPARENT HUNDRED AND SEVENTEEN MILLION DOLLAR NEGATIVE VARIANCE THAT YOU'RE LOOKING AT IS NOT AN INDICATION OF DETERIORATING FINANCIAL PERFORMANCE COMPARED TO OUR JUNE 4TH UPDATE TO YOU
[INAUDIBLE] WE GOT TO START WITH THE AERONAUTICAL REVENUE LINE AND THE FORECAST SHOWS TWO HUNDRED NINETY SEVEN MILLION
AND THAT IS THE REVENUE REQUIREMENT
THAT'S WHAT THE AIRLINES WILL OWE US
AND THE REASON IT'S SO MUCH LESS THAN THE BUDGET IS BECAUSE OF THE APPLICATION OF THE CARES ACT GRANT
WHEN WE PAY FOR THAT SERVICE OR OPERATING COSTS THAT WOULD OTHERWISE GO INTO THE RATE BASE, WITH A GRANT THOSE COSTS ARE REMOVED FROM THE RATE BASE
THE CARES ACT GRANT DOESN'T SHOW UP HERE AS PART OF OUR NET OPERATING INCOME
IT COMES IN AS NON OPERATING REVENUE
SO THAT'S WHY THIS PICTURE IS PERHAPS NOT AS CLEAR AS IT COULD BE
BUT NONETHELESS THE THE AERONAUTICAL COMPARISON AS DAN INDICATED IS NOT PARTICULARLY RELEVANT
AS YOU SEE, THE REVISED BUDGET IS EXACTLY THE SAME AS THE APPROVED BUDGET
WE JUST DIDN'T KNOW ENOUGH AT THAT TIME TO BE ABLE TO HAVE A REASONABLY ACCURATE AERONAUTICAL REVISED BUDGET
THE OTHER PROBLEM WITH OUR COMPARISON HERE IS ON THE NON AERONAUTICAL SIDE IS THAT WHEN WE SET THE REVISED BUDGET, WE ASSUMED A 51 PERCENT REDUCTION IN THE PASSENGER LEVEL AND WHEN WE REPORTED TO YOU ON JUNE 4TH, WE HAD UPDATED OUR FORECAST ASSUMPTION TO ASSUME A 61% DROP AND THAT CONTINUES TO BE OUR FORECAST FOR THE YEAR
SO COMPARED TO THAT JUNE 4TH PRESENTATION, AT WHICH WE WERE PROJECTING A HUNDRED AND THIRTEEN MILLION DOLLAR NON AERONAUTICAL REVENUE, WE'RE ACTUALLY SLIGHTLY BETTER BECAUSE WE'RE SHOWING A HUNDRED FIFTEEN MILLION
THAT'S JUST A SLIGHT IMPROVEMENT, BUT WE'LL TAKE ANYTHING WE CAN AT THIS POINT
ON THE O&M SIDE
WE ARE COMPARING AGAINST THAT REVISED BUDGET AND YOU'LL SEE A FORECAST HERE THAT SHOWS WE'LL BE SIX MILLION DOLLARS UNDER
AND MOST OF THAT IS ATTRIBUTABLE TO SAVINGS FROM CENTRAL SERVICES AND ALSO SOME SAVINGS THAT WE ANTICIPATE FROM THE ENVIRONMENTAL REMEDIATION LIABILITY EXPENSES
WHEN WE CLOSE OUT PROJECTS, WE GET TO THE END OF THEM, WE SEE THAT THE COSTS AREN'T AS MUCH AS WE ESTIMATED AND I THINK THAT'S WHERE WE'LL BE THIS YEAR
SO AGAIN COMPARED TO OUR JUNE FOURTH PRESENTATION, WE ARE ACTUALLY BETTER ON THE AERONAUTICAL SIDE BECAUSE THE REVENUES ARE LOWER WHICH INDICATES WE'VE REDUCED COST TO THE AIRLINES
THE NON AERONAUTICAL REVENUES ARE ACTUALLY BETTER THAN AT JUNE 4TH, AND THE O&M EXPENSE IS UNDER
SO EVEN THOUGH WE'RE SHOWING A NEGATIVE NOI OF 117 COMPARED TO THE REVISED BUDGET, MY MESSAGE TO YOU IS WE'RE ACTUALLY BETTER ON AERONAUTICAL REVENUES, NON AERONAUTICAL, REVENUES, AND O&M
ANOTHER KEY MEASURE, IS OUR NON AERONAUTICAL NLY AND THAT'S REALLY THE CASH FLOW THAT WE GENERATE
AND YOU CAN SEE HERE THAT WE'RE JUST BARELY POSITIVE AT 4 MILLION
AND YOU KNOW, THIS SHOWS MORE THAN ANYTHING ELSE HOW DEVASTATED THE AIRPORT HAS BEEN BY THIS REDUCTION IN PASSENGERS BECAUSE MOST OF OUR NON AERONAUTICAL REVENUES ARE DRIVEN BY PASSENGERS, AND IF NOT FOR THE CARES ACT GRANT, WE WOULD BE IN A VERY DIFFERENT SITUATION
SO THE CARES ACT GRANT WE ANTICIPATE FULLY COLLECTING THE 192 MILLION
THIS FORECAST ASSUMES JUST AS THREE MILLION THIS YEAR AND NINETEEN MILLION NEXT YEAR
OF OPTIMIZE THE USE OF THE GRANT TO HELP US ACHIEVE WE DID ON JUNE 4TH THAT WE WOULD USE A HUNDRED AND SEVENTY THAT IS STILL SUBJECT TO CHANGE
WE'RE LOOKING TO KIND OUR GOALS FOR DEBT SERVICE COVERAGE, CASH IMPROVEMENT, AND MITIGATING AIRLINE COSTS
ON THE CPE HERE AGAIN AT $26
THAT WOULD HAVE BEEN SORT OF ASTRONOMICAL IF I'D THOUGHT ABOUT THAT A YEAR AGO, BUT THIS IS ACTUALLY BETTER THAN WHAT WE WERE PROJECTING ON JUNE 4TH
BACK THEN WE WERE PROJECTING A NUMBER JUST UNDER $29 AND THE DEBT SERVICE COVERAGE OF 136
THIS IS ACTUALLY BETTER THAN THE 129
WE PROJECTED BACK ON JUNE 4TH
SO AGAIN, WE'RE DOING ACTUALLY BETTER IN ALL THESE KEY MEASURES
IN THE ADF BALANCE, WHICH IS OUR CASH, YOU KNOW, WE STARTED THE YEAR WITH OVER 300 MILLION
THE REVISED BUDGET WAS OUR TARGET FOR THE YEAR BASED ON TEN MONTHS OF O&M COSTS BEING REFLECTED IN OUR CASH BALANCE
AND RIGHT NOW WE'RE PROJECTING TO RESTORE MOST OF THAT
AND AGAIN, THIS IS PRIMARILY DUE TO THE CARES ACT GRANT BUT IT'S ALSO DUE TO THE FACT THAT WE'VE BEEN ABLE TO RECONCILE SOME WHAT WE CALL BACK FUNDING WHERE WE'RE ABLE TO TRANSFER SOME FUNDS AFTER WE CLOSE OUT GRANTS AND MORE FULLY UTILIZE SOME OF THE BOND FUNDS AND TRANSFER THE MONEY BACK INTO OUR CASH FUND
SO WE'VE MADE SOME SIGNIFICANT ACCOMPLISHMENTS THERE AS WELL
SO I GUESS THE REAL BOTTOM LINE HERE IS THAT, YOU KNOW, COMPARED TO JUNE 4TH
OUR CASH BALANCES ARE UP
OUR DEBT SERVICE COVERAGE IS UP
OUR CPE IS DOWN, OUR OM IS TRACKING LOWER, AND THE AMOUNT THAT THE AIRLINES WOULD OWE US AT THE END OF THE YEAR, OR THE AIRLINE DEFICIT, IS ACTUALLY GOING TO GO DOWN AS WELL
SO BOTTOM LINE
I'D LIKE TO SAY THAT WE ARE ACTUALLY DOING A LITTLE BIT BETTER THAN WE WERE PROJECTING ON JUNE 4TH
EVEN IF THE SHOWS A BIG NEGATIVE VARIANCE AND I'LL DISCUSS THE CAPITAL SPENDING ON A SLIDE COMING UP
SO LET'S MOVE ON TO THE NEXT SLIDE, PLEASE
ALL RIGHT, DAN INDICATED THAT THE JULY WAS COMING IN AT ABOUT 72 PERCENT UNDER
THIS STILL SHOWS THE FORECASTED 74
SO WE'RE JUST SLIGHTLY BETTER THAN THE FORECAST FOR JULY AND I THINK WHAT WE'VE HEARD FROM ALASKA AIRLINES LAST WEEK IS THAT THEY'RE SEEING SOME CONCERN AS THEY LOOK AT INTO AUGUST AND SEPTEMBER WITH THEIR ADVANCE BOOKINGS
SO THERE'S STILL A LOT OF UNCERTAINTY FOR THE REMAINDER OF THE YEAR, BUT WE THINK THE 61 PERCENT DOWN ASSUMPTION IS STILL REASONABLY CONSERVATIVE
NEXT SLIDE, PLEASE
SO MUCH OF OUR PRESENTATION TODAY HAS BEEN FOCUSED ON FINANCIALS
I JUST WANTED TO COMMUNICATE THAT WE HAVE ALSO BEEN MAKING A PROGRESS ON A LOT OF OUR SIGNIFICANT OBJECTIVES FOR THE YEAR AND I WON'T CALL THESE ALL OUT, BUT I JUST LIKE TO NAME A FEW
WE HAVE COMPLETED THE DESIGN FOR THE CONDOMINIUM NOISE INSULATION
SO THAT'S AN IMPORTANT ACCOMPLISHMENT FROM AN ENVIRONMENTAL SUSTAINABILITY STANDPOINT
AS YOU KNOW, WE SIGNED A LONG-TERM CONTRACT FOR THE PURCHASE OF RENEWABLE NATURAL GAS AND THE FINANCIAL AREA, IT'S ALSO A CUSTOMER SERVICE INITIATIVE AS WELL
WE DID LAUNCH THE PUBLIC PARKING PRE-BOOK PROGRAM
SO WE'RE CONTINUING TO ACCOMPLISH A NUMBER OF THINGS IN ADDITION TO IMPLEMENTING THE FLY HEALTHY AT SEA INITIATIVE, WHICH HAS BEEN OUR PRIMARY FOCUS
NEXT SLIDE, PLEASE
ALL RIGHT ON THE CAPITAL SPENDING SIDE WE ARE ACTUALLY PROJECTING TO SPEND ABOVE THE REVISED BUDGET
AND AGAIN, I WOULD LIKE TO TELL YOU THAT I THINK THIS IS ACTUALLY GOOD NEWS BECAUSE WE'VE BEEN ABLE TO ACCELERATE SPENDING IN A COUPLE KEY PROJECTS TO GET WORK DONE IN TWO THOUSAND RATHER THAN TWO THOUSAND ONE AND TAKE ADVANTAGE OF A SITUATION WHERE WE HAVE LOWER OPERATIONAL IMPACTS
THAT'S BEEN PRIMARILY WITH THE NORTH SATELLITE PROJECT, BAGGAGE OPTIMIZATION, AND THE AIRFIELD PAVEMENT PROJECT
ALL OF THESE PROJECTS BENEFIT WHEN WE ACTUALLY HAVE FEWER PASSENGERS
THESE ARE NOT PROJECT BUDGET INCREASES, IT'S JUST AN ACCELERATION OF SPENDING
ON THE FLIP SIDE
WE'VE GOT THE IAF, OR INTERNATIONAL ARRIVALS FACILITY, WHERE WE'RE ACTUALLY SPENDING LESS AND THAT WOULD NOT BE AN INDICATION OF SAVING
IT'S JUST THAT THE SPENDING IS BEING DELAYED AND IT WILL BE PUSHED OUT INTO NEXT YEAR
SO OVERALL WE'RE ANTICIPATING TO SPEND MORE THAN OUR REVISED BUDGET AND I HAVEN'T BEEN ABLE TO REPORT THAT IN LONG TIME
AND AGAIN, I'D LIKE TO SAY THAT THAT'S GOOD NEWS
NEXT SLIDE, PLEASE
I GUESS THAT CONCLUDES MY COMMENTS
IF THERE ARE ANY QUESTIONS, I'D BE HAPPY TO TAKE THEM OR WE CAN FIELD THEM AT THE END
OKAY
I SHOULD MENTION ALSO THAT COMMISSIONERS IN YOUR BINDERS
THERE'S CONSIDERABLY MORE DETAIL AND THE FINANCIAL REPORT FOR YOUR CONSUMPTION
BORGEN, THIS IS COMMISSIONER BOWMAN
I HAVE A COUPLE QUESTIONS IF YOU DON'T MIND SURE AND JUST BECAUSE I APPRECIATE JUST FOCUSING ON AVIATION TO START WITH, OUR BIGGEST LINE OF BUSINESS
SO THANK YOU FOR CALLING OUT THE QUEST BECAUSE IT WAS EXACTLY MY FIRST QUESTION WAS WHY THE AERONAUTICAL REVENUE THE REVISED BUDGET WAS THE SAME AS THE APPROVED BUDGET
SO CAN YOU KIND OF GIVE A SNAPSHOT? I GUESS I'M NOT UNDERSTANDING
WHERE ARE WE NOW WITH AERONAUTICAL? I SEE THE FORECAST FOR THE END OF THE YEAR IS 297
OKAY
WELL THERE IS A SLIDE
THERE'S SO MUCH HERE
SO I APOLOGIZE
FAST-FORWARDING MYSELF AND I'LL TELL YOU THE SLIDE NUMBER HERE IN JUST A MOMENT
OKAY
I THINK YOU MIGHT BE IN THE APPENDIX
IT'S IN THE APPENDIX AND IT IS SLIDE 41
OKAY
LET ME GO BACK TO THAT
THEN DO YOU WANT TO TALK ABOUT THAT FOR JUST A SECOND? SURE
THIS JUST SHOWS WHERE WE ARE ON A YEAR-TO-DATE BASIS
AND AGAIN THE COMPARISONS TO THE BUDGET AREN'T PARTICULARLY RELEVANT JUST BECAUSE THEY WEREN'T-- WE DIDN'T REVISE THE BUDGET
BUT THIS SHOWS THAT WE'RE, YOU KNOW, WELL BELOW BUDGET, BUT AGAIN FROM A REVENUE REQUIREMENT STANDPOINT, THIS IS THIS IS GOOD NEWS
SO I THINK FROM THE AERONAUTICAL SIDE THAT MOST IMPORTANT IS REALLY THE YEAR END RESULTS AND WHERE WE ARE FROM A STANDPOINT OF COLLECTIONS OR ANTICIPATED COLLECTIONS VERSUS THE REQUIREMENT
AND AT THIS POINT, WE ARE CURRENTLY EXPECTING THAT FROM THE AERONAUTICAL RATE-BASED STANDPOINT, THE REQUIREMENT WOULD BE 281 MILLION AND THAT WE ANTICIPATE BILLING THE CARRIER'S ABOUT 256
SO THAT WOULD CREATE A YEAR-END DEFICIT OF ABOUT 25 MILLION AND THAT'S ABOUT 20 MILLION LESS THAN WHAT WE WERE PROJECTING ON JUNE 4TH
[INAUDIBLE] A 44 MILLION DOLLAR DEFICIT THAT POINT
SO WE'RE NARROWING THAT WHICH WOULD BE GOOD NEWS FOR THE AIRLINES
OKAY, AND THEN
THAT IS GOOD NEWS
AND THEN MY SECOND QUESTION, IT'S REGARDING PAGE 19
AND SO I DON'T KNOW THAT THAT'S NECESSARILY A SLIDE BUT LOOKING IT'S THE YEAR END FORECAST FOR SEVERAL OF OUR NON AERONAUTICAL BUSINESSES AND I'M JUST TRYING TO UNDERSTAND THE DIFFERENCE BETWEEN OUR YEAR-TO-DATE PROJECTIONS AND I'M GOING TO USE A COUPLE OF EXAMPLES
SO PUBLIC PARKING, OUR VARIANCE THERE WAS A 6.7% INCREASE IN PUBLIC PARKING REVENUES, WHICH IS GREAT
AIRPORT DINING AND RETAIL 15.3% BUT THEN IF YOU GO OVER AND LOOK AT OUR YEAR-END CAST YOU'RE THEN PROJECTING ON PUBLIC PARKING A 17.9 PERCENT DECREASE, ON AIRPORT DINING AND RETAIL INSTEAD OF POSITIVE, IT'S NOW 11.4 DECREASE AND IT KIND OF GOES ON AND ON
SO CAN YOU HELP ME UNDERSTAND WHAT ASSUMPTIONS YOU'VE TAKEN INTO CONSIDERATION WHEN LOOKING AT YEAR-END VERSUS YEAR-TO-DATE? SURE
WELL, IT'S ALL BASED ON THE MONTHLY PASSENGER LEVEL ESTIMATES
AND AS I SAID BEFORE, THE ORIGINAL BUDGET OBVIOUSLY ASSUME WE'RE GOING TO GROW 3%
THE REVISED BUDGET ASSUMED WE WERE GOING TO BE DOWN 51 PERCENT FOR THE YEAR AND WE'RE CURRENTLY ESTIMATING WILL BE DOWN 61 PERCENT FOR THE YEAR
EACH OF THOSE INVOLVES A DIFFERENT SPREAD AND A MONTH-BY-MONTH BASIS
BUT ON A YEAR-TO-DATE BASIS, YOU KNOW, WE STILL HAD WHAT I WOULD DESCRIBE AS TWO TO TWO AND A HALF MONTHS
IT'S A VERY STRONG PERFORMANCE AT THE BEGINNING OF THE YEAR AND THEN OBVIOUSLY THINGS STARTED TO FALL OFF
AND YOU KNOW, OVERALL I THINK THAT THE BUSINESSES HAVE VARIED TO SOME EXTENT
YOU CAN ACTUALLY MAKE AN ARGUMENT THAT THE PARKING REVENUE ON A PER PASSENGER BASIS IS ACTUALLY SLIGHTLY HIGHER IN SOME CASES
I THINK WE'LL SEE THE SAME FROM A DINING AND RETAIL STANDPOINT AS WELL
BUT OVERALL I THINK THE KEY IS THE FORECAST IS DRIVEN BY THE PASSENGER LEVEL AND THAT'S WHERE IF WE'RE BASING IT ON THE 61 PERCENT DOWN, YOU KNOW, THE YEAR-END ESTIMATE IS REALLY DRIVEN BY THAT
AND OBVIOUSLY THE SECOND HALF OF THE YEAR, HOW WE RECOVER, YOU KNOW, THAT'S GOING TO BE TREMENDOUSLY IMPORTANT TO DRIVING OUR OVERALL PERFORMANCE
BORGEN THAT IS REALLY REALLY HELPFUL
THANK YOU SO MUCH FOR CALLING THAT OUT
AND BECAUSE WHAT I'M HOPING THAT IS WE'RE PREPARING THE 2021 BUDGET THAT WE'RE ABLE, I UNDERSTAND WE HAVE TO START SOMEWHERE AND ENPLANEMENTS, IT MAKES PERFECT SENSE
YOU HAVE TO JUST PICK A NUMBER AND PROJECT OUT FROM THERE
BUT I'M ALSO HOPING THAT AT THE AIRPORT IN PARTICULAR THAT WE CAN MAYBE TAKE A DEEPER DIVE AND THINK ABOUT THE FUNCTIONALITY OF THE BUSINESS LINES
YOU KNOW, FOR EXAMPLE, THERE'S NO LONGER FOOD, YOU KNOW ON FLIGHT
SO YES, IT WOULD BE PROBABLY A REASONABLE ASSUMPTION THAT FOR THOSE PASSENGERS THAT ARE FLYING, THEY'RE MORE LIKELY TO EAT AT THE AIRPORT
WE'VE ALSO SEEN FOR EXAMPLE, WE'VE ALWAYS EXPECTED A VERY HIGH INCREASE IN OUR TNCS, UBER, AND LYFT FOR THE PUBLIC AND YET NOW WE'RE SEEING ENORMOUS DECREASE IN THAT MODE OF TRANSPORTATION BUT AN UPTICK IN PERSONAL RENT-A-CARS ON THE OTHER SIDE
SO I'M HOPING THAT AS WE PUT TOGETHER THE BUDGET THAT SOME OF THOSE ASSUMPTIONS CAN BE CALLED OUT AND WE'RE NOT JUST USING THAT COMMON DENOMINATOR OF ENPLANEMENTS TO MAKE PROJECTIONS
I JUST THINK IT WOULD BE REALLY LIKE TO UNDERSTAND THE STAFF'S THINKING ABOUT HOW EACH LINE OF BUSINESS MIGHT PROCEED
ALL RIGHT, THANK YOU COMMISSIONER
WE WILL MAKE SURE WE ILLUMINATE THAT FOR YOU
AND WE'RE DOING THE BEST WE CAN TO DO THAT AND TO RECOGNIZE WHAT'S ACTUALLY HAPPENING ON A MONTH-BY-MONTH BASIS
SO WE UNDERSTAND HOW THE BUSINESSES ARE CHANGING AND HOW WE CAN USE THAT INFORMATION TO DRIVE OUR ASSUMPTION
SO WE'LL MAKE A POINT OF THAT AT BUDGET TIME TO LET YOU KNOW WHAT WE'RE SEEING AND HOW WE'RE USING THAT INFORMATION TO DRIVE OUR ASSUMPTIONS
THANK YOU
EXCELLENT
CONTINUE WITH COMMISSIONER QUESTIONS AND COMMENTS
CERTAINLY
COMMISSIONER CALKINS
COMMISSIONER CALKINS, FOR ANY COMMENTS OR QUESTIONS ON THIS ITEM? I JUST GOT COMMISSIONER CALKINS THE UNMUTE PROMPT
MIGHT NEED TO DO THAT AGAIN
THANK YOU, LAUREN
I WAS ON THERE FOR A MOMENT AND IT BOUNCED BACK
WE CAN HEAR YOU NOW
CAN YOU HEAR ME? YES, GREAT
THANK YOU BORGEN FOR THE PRESENTATION AND IT IS ENCOURAGING TO SEE SOME CONCRETE NUMBERS THAT HAVE STARTED TO TURN IN THE RIGHT DIRECTION A LITTLE BIT BETTER THAN WE FORECAST
I, TOO, SHARE YOUR CONCERN ABOUT THE COMMENTS WE HEARD FROM ALASKA THE OTHER DAY ABOUT BOOKINGS FOR AUGUST AND SEPTEMBER
WE ARE VERY MUCH IN A WAIT-AND-SEE KIND OF MOMENT HERE
BUT I THINK THAT MIGHT BE SOMEWHAT COUNTERACTED BY THE LAST TWO WEEKS OF NATIONWIDE COVID NUMBERS DROPPING WHICH I THINK HAVE THE GREATEST IMPACT ON OUR OVERALL PASSENGER LEVELS
BUT YEAH, I MEAN, I THINK WHAT CONTINUES TO BE FOR ME THE RULE, THE MAIN RULE OF THE GAME FOR BUDGETING THIS YEAR IS FLEXIBILITY AS WE MOVE FORWARD
I SUSPECT THAT THE TIME WE FINALIZE OUR BUDGET AND LATE FALL THERE WILL BE SIGNIFICANT NEW INSIGHTS INTO THE SPREAD OF THE DISEASE, THE CONCLUSION THE PANDEMIC HOPEFULLY AS A LIGHT AT THE END OF THE TUNNEL AT THAT POINT AND WE MAY NEED TO MAKE SOME ADJUSTMENTS OVER THESE NEXT FEW MONTHS
BUT I GENUINELY APPRECIATE THE GREAT WORK YOU GUYS HAVE DONE TO KEEP US UP-TO-DATE
THAT'S IT
THANK YOU
COMMISSIONER CHO FOR ANY COMMENTS
NO, I DON'T HAVE ANY QUESTIONS BUT WANT TO POINT OUT THAT AND REMIND EVERYONE THAT YOU KNOW, WE'RE WORKING UNDER EXTREME UNCERTAINTY AND I THINK THAT THE FACT THAT WE'RE IN A BETTER PLACE FINANCIALLY THAN WE EXPECTED IS A TESTAMENT TO HOW WELL WE FORECASTED AND PLANNED FOR THE SITUATION DESPITE THE FACT THAT COVID CASES KEEP GOING UP IN OUR REGION AND RECOVERY IS SLOWER THAN MAYBE SOME OF US EXPECTED
SO I REALLY WANT TO COMMEND THE TEAM DAN AND BORGEN AND EVERYONE ELSE WHO HAVE BEEN KIND OF WORKING DAY IN AND DAY OUT TO MAKE SURE THAT WE'RE IN A GOOD PLACE
SO I REALLY APPRECIATE THAT AND I HOPE EVERYONE ELSE APPRECIATES IT AS WELL
THANK YOU
COMMISSIONER FELLEMAN FOR ANY COMMENTS? COMMISSIONER FELLEMAN, WE CANNOT HEAR YOU
GREAT
SORRY, I JUST WANTED TO CONCUR WITH COMMISSIONER CHO'S COMMENDATIONS TO THE STAFF'S JUDICIOUS BUDGETING
AND I WAS JUST WONDERING WHETHER WE HAVE HEARD ANY INDICATIONS AS TO ANY OF OUR ADRS INABILITY TO TO YOU KNOW, PAY THE DEFERRED PAYMENTS AND HOW MUCH WE HAVE FACTORED IN THE POTENTIAL OF SOME OF THAT SORT OF DEFAULT ON PAYMENTS? AND THEN THE OTHER QUESTION WAS, YOU KNOW, THIS THIS LETTER THAT WE HAVE RECEIVED FROM THE AIRLINES HAS BEEN REPORTED ON AND ACCUSATIONS THAT WE SHOULD OPERATE AS A QUOTE-UNQUOTE NONPROFIT ORGANIZATION AS TO WHETHER I KNOW WE'RE ANALYZING THAT SORT OF THING
BUT IF THERE HAVE BEEN ANY THOUGHTS IN TERMS OF ITS POTENTIAL IMPACT ON THESE FORECASTS? FIRST QUESTION WAS YOU KNOW, DO WE HAVE ANY INDICATION THAT OUR AIRPORT DINING AND RETAIL CUSTOMERS WILL NOT BE ABLE TO PAY THE DEFERRED RENT
AT THIS POINT
I'M NOT AWARE OF ANY
OBVIOUSLY WE'LL BE MONITORING THAT
IN TERMS OF THE LETTER WE RECEIVED FROM THE AIRLINES, WE HAVE RESPONDED BACK TO THAT WITH SOME QUESTIONS THAT WE WANTED TO HAVE CLARIFIED
THERE WERE SOME ELEMENTS OF THAT WE DIDN'T FULLY UNDERSTAND BUT NO AT THIS POINT, OUR FORECASTS ARE BASED ON THE EXISTING ASSUMPTIONS THAT WE'RE IN ESSENCE FOLLOWING OUR LEASE AGREEMENT WITH THE AIRLINES IN TERMS OF HOW DO WE CALCULATE REVENUES AND OUR EXPECTATIONS OF THOSE REVENUES ARE PAID
THAT WOULD HELP
THANK YOU VERY MUCH
THANK YOU
AND THEN COMMISSIONER STEINBREUCK FOR COMMENT? WELL, THANK YOU
I APPRECIATE THIS HIGH-LEVEL OVERVIEW AND THE ADDITIONAL DETAILED INFORMATION WAS PROVIDED IN OUR MEMO
IT STRIKES ME THAT WHAT WE'RE HEARING IS THAT WE HAVE BEEN MEETING THE CHALLENGES OF THIS UNPRECEDENTED CRISIS BOTH HEALTH AND FINANCIAL AFFLICTING, YOU KNOWM NOT JUST US BUT THE STATE, THE WORLD
ON THE GOOD SIDE HERE, I THINK WE CAN ATTRIBUTE THAT OUR NUMBERS TO FISCAL PRUDENCE AND STRONG FINANCIAL MANAGEMENT THAT IS CONTINUING AND AT THE SAME TIME CURTAILING SOME OF OUR EXPENSES APPROPRIATELY AND WITH FORETHOUGHT
HOLDING THE LINE ON HIRING VACANT POSITIONS AND CONSIDERING DELAYING PROJECTS WHERE PRUDENT AND APPROPRIATE AND ACCELERATING OTHERS
SO ALL IN ALL I THINK WE'RE ON THE RIGHT COURSE HERE, AND I THINK WE'RE DOING A GREAT JOB
SO THANK YOU TO OUR ALL OF OUR STAFF AND MANAGEMENT TEAM HERE
THANKS.IF THERE ARE NO MORE QUESTIONS ABOUT AVIATION WE'LL MOVE TO KELLY TO TALK ABOUT MARITIME AND ECONOMIC DEVELOPMENT DIVISION
OKAY
GOOD AFTERNOON COMMISSIONERS
CAN YOU ALL HEAR ME? OKAY
NEXT SLIDE, PLEASE? TODAY THIS IS THE FIRST TIME WE'RE GOING TO BE GOING THROUGH SORT OF AN EDUCATIONAL WALK THROUGH ALL THE NON-AVIATION DIVISIONS
THE FIRST SLIDE THAT WE PUT TOGETHER HERE WAS SORT OF THE ROLL-UP OF THESE DIVISIONS
AND YOU'LL SEE SORT OF HOW THEY INTERACT WITH EACH OTHER AND THEN WE'LL GO THROUGH
SO WE'LL START OUT WITH THIS SLIDE, THEN WE'LL GO THROUGH THE MARITIME AND STORMWATER AND THEN WE'LL TALK ABOUT THE JOINT VENTURE AND THEN WE'LL GO INTO ECONOMIC DEVELOPMENT
SO THIS SLIDE YOU ARE LOOKING AT IS THE P&L ROLL UP FOR THE NON-AVIATION DIVISIONS YEAR-TO-DATE COMPARED WITH THE REVISED BUDGET
THE REVISED BUDGET WE CREATED LATE MARCH FOR EDD AND MARITIME AND THE APPROVED BUDGET FOR THE JOINT VENTURE
AS YOU CAN SEE THE NOI SO FAR IS FAVORABLE TO REVISED BUDGET
AS MUCH AS WE'D LIKE THAT TO CARRY FORWARD INTO THE BACK HALF OF THE YEAR, THERE ARE THREE KEY ITEMS THAT WILL BE DISCUSSED LATER IN THE PRESENTATION, WHICH WILL NEGATIVELY IMPACT THE SECOND HALF .FIRST IS THE SPIKE IN EMERGENCY LEAVE IN Q2 FOR MANY MAINTENANCE EMPLOYEES CREATED A LOWER PROPORTION OF DIRECT CHARGED HOURS
MAINTENANCE EXPENSE WILL BE MADE UP IN THE SECOND HALF OF THE YEAR BY A HIGHER BURDEN RATE FOR THE PROJECT
SO YOU'LL SEE ACROSS THE BOARD TYPICALLY WERE UNDER IN THE FIRST HALF AND THAT WILL BE A KIND OF A CATCH UP IN THE SECOND HALF
SECOND TIMING AND ACCRUAL OF INVOICES SUCH AS SECURITY AND OTHER OUTSIDE SERVICES
I KNOW FOR COMMISSIONER BOWMAN AND SOME OF YOU THAT HAVE BEEN HERE A LITTLE LONGER, YOU SEE TYPICALLY WE'RE UNDER A BIT IN FIRST QUARTER AND THEN WE CATCH BACK UP TOWARDS THE END OF THE YEAR
AND THEN THIRD IS THE TIMING OF CRANE REMOVAL AT HUSKY TERMINAL
IT'S ABOUT 2.6 MILLION DOLLAR ALLIANCE IMPACT WITH ABOUT 1.3 GOING TO PORT OF SEATTLE JOINT VENTURE
THAT WAS PLANNED IN Q2 AND THAT WILL BE DEFERRED TILL LATER IN THE YEAR GIVING US A LITTLE MORE FAVORABLE [INAUDIBLE] NEXT SLIDE
NEXT SLIDE PLEASE
OKAY
SO AS YOU CAN SEE HERE, REVENUE IS EXPECTED TO COME IN ABOUT 2.2 MILLION UNFAVORABLE TO THE REVISED BUDGET AND EXPENSES ABOUT 1 MILLION FAVORABLE
OBVIOUSLY THERE'S NO RETURN TO THE CRUISE BUSINESS IN 2020 THAT'S DRIVING THE UNFAVORABLE VARIANCE
YOU CAN SEE FISHING, COMMERCIAL, AND RECREATIONAL MARINAS ARE SEEING A LITTLE IMPACT
WE'VE ACTUALLY BEEN FAIRLY FAVORABLE IN THE ELLIOTT BAY MORE OF OUR COMMERCIAL BUSINESSES
AND AS JO MENTIONED EARLIER, RECREATIONAL BOATING IS REALLY CATCHING UP THE LAST COUPLE OF MONTHS
IT STARTED OUT WITH A LITTLE LOWER OCCUPANCY AND IT'S REALLY CAUGHT RIGHT BACK UP TO MORE OF OUR TYPICAL RUN RATE
SOME COST SAVINGS
WE GET THE ELIMINATION OF THE PORT VALET AND FURTHER CUTS IN CENTRAL SERVICES
THE CAPITAL SPENDING IS FORECAST TO BE AHEAD OF REVISED BUDGET YEAR TO DATE WITH THE T1 17 RESTORATION ADVANCING FASTER THAN PLANNED
OUR CONTRACTOR ACTUALLY HAD A FAIRLY AGGRESSIVE SCHEDULE
WHETHER OR NOT WE MEET THAT TO BE DETERMINED BUT WE'VE GOT IT FORECAST TO COME IN AHEAD OF REVISED BUDGET
NEXT SLIDE PLEASE
THIS A BRIEF SUMMARY OF THE YEAR-TO-DATE RESULTS
DETAILS BY BUSINESS LINE ARE IN SLIDES 61 THROUGH 67 IN THE APPENDIX
REVENUE IS TRACKING SO FAR TO REVISED BUDGET, BUT DOWN FROM LAST YEAR AS EXPECTED WITH NO CRUISE SAILINGS
EXPENSES ARE BELOW REVISED BUDGET YEAR TO DATE BASED ON MAINTENANCE AND INVOICING ISSUE I DISCUSSED EARLIER
WE ARE FLAT WITH 2019 WITH A 1 MILLION DOLLAR PAYMENT TO THE ALLIANCE FOR T46 OFFSET BY THE COST-CUTTING INITIATIVES AND SAVINGS FROM PORT VALET
AND FOR CAPITAL WE SPENT ABOUT 10 MILLION DOLLARS THROUGH THE FIRST HALF OF THE YEAR
MOSTLY ON SHILSHOLE BAY SERVICE BUILDINGS AND ARE FORECASTING ABOVE BUDGET AS T 117 CONSTRUCTION RAMPS UP THE BACK HALF OF THE YEAR
AND THE STORM WATER UTILITY REVENUE AND EXPENSES ARE EACH TRACKING FAVORABLE TO BUDGET
NEXT SLIDE
OKAY, HERE IS A SUMMARY OF THE EVENTS AND ACHIEVEMENTS FOR Q2
AS YOU CAN SEE MOST OF THE WORK CENTERED AROUND MANAGING COVID-19 NEEDS OF OUR CUSTOMERS AND FACILITIES
ADDITIONALLY A LOT OF WORK FROM THE ENVIRONMENTAL OPERATIONS AND FINANCE TEAMS AS WE STRIVE TO IMPROVE THE ENVIRONMENTAL QUALITY OF THE PUGET SOUND AND UTILIZE AVAILABLE FUNDING OPTION TO THE PORT
FURTHER DETAILS ARE AVAILABLE ON SLIDES 98 AND 69 FOR THIS
NEXT SLIDE
HERE'S A P&L FOR THE STORM WATER UTILITY YEAR TO DATE
AS YOU CAN SEE, IT'S TRACKING TO BUDGET AS THE MAINTENANCE VARIANCE WILL LIKELY CLOSE IN THE SECOND HALF OF THE YEAR
WE'LL BE WORKING WITH OUR CONSTITUENTS OVER THE NEXT MONTH TO FORM A BASIS FOR FUTURE PLANNED RATES
NEXT SLIDE
OKAY, HERE'S A SLIDE WITH THE SUMMARY OF THE NORTHWEST SEAPORT ALLIANCE
THE BIG TAKEAWAY HERE IS THAT CONTAINER VOLUMES YEAR-TO-DATE ARE ABOUT 19 PERCENT BELOW BUDGET
GIVEN THE ALLIANCE ACTS AS THE OPERATOR ON THE SOUTH HARBOR, THEY ARE SEEING SOME VARIABLE COST SAVINGS ALONG WITH GENERAL COST REDUCTION INITIATIVES AND MEASURES
OVERALL ABOUT 42 MILLION OF OPERATING INCOME WITH ABOUT HALF OF THAT DISTRIBUTED TO THE JOINT VENTURE WHICH IS WHAT WE'RE CALLING OUR PORTION OF THE NORTHWEST SEAPORT ALLIANCE AND YOU'LL SEE HOW THAT WINDS DOWN IN THE NEXT SLIDE
PLEASE
OKAY
SO HERE'S A SUMMARY OF WHAT WE CALL THE JOINT VENTURE
I'LL KIND OF WALK IT THROUGH
IT CONTAINS BOTH THE DISTRIBUTION, LIKE THE FIRST LINE YOU SEE THERE IS THE REVENUE DISTRIBUTION WE GET FROM THE NORTHWEST SEAPORT ALLIANCE AND THEN THE CONTRA JOINT VENTURE REVENUE THAT YOU SEE BELOW THAT IS BASICALLY HALF OF THE PAYMENT THAT WE MAKE TO THE SEAPORT ALLIANCE FOR LEASING T46 COMES BACK IN THE TERMS OF CONTRA REVENUE
THE OTHER SERVICE IS TENANT REIMBURSEMENTS AND THEN THERE'S SOME REVENUE I THINK IT'S MOSTLY DUE TO FOSS TIE-UPS ON WHAT IS NOW THE PORT OF SEATTLE PART OF T46, THE NORTHWEST PART OF T46
AND THE EVENT AND THE EXPENSES ARE MOSTLY MAINTENANCE EXPENSES RELATED TO THE REIMBURSABLE'S AND THEN SOME OF THE JOINT VENTURE DIRECT
ONE OF THE THINGS YOU WILL SEE IN THE 2021 BUDGET HERE IS THAT MANY OF THE ENVIRONMENTAL AND SUSTAINABILITY COSTS ASSOCIATED WITH REMEDIATION WILL END UP IN THIS BUCKET AS WELL, THE JOINT VENTURE BUCKET, BECAUSE WE'RE NOT ALLOWED TO CHARGE THOSE TO THE SEAPORT ALLIANCE VIA THE CHARTER
AND I THINK THAT'S IT FOR THE MARITIME IF YOU WANTED TO ASK QUESTIONS NOW OR WAIT UNTIL WE FINISH WITH ECONOMIC DEVELOPMENT
SO LET'S CONTINUE
OKAY NEXT SLIDE
WILL DO
COMMISSIONER STEINBREUCK, COMMISSIONER BOWMAN INDICATED
SHE DID HAVE A QUESTION RELATING TO ONE OF THESE SLIDES
ALL RIGHT
LET'S GO TO COMMISSIONER BOWMAN
THANK YOU
ALL RIGHT
LET ME GET HER UNMUTED
AND AN ADDITION, I DO BELIEVE DAVID MCFADDEN WOULD LIKE TO BE UNMUTED
GREAT
THANK YOU
THANKS KELLY FOR THIS
THE QUESTION I HAVE, I THINK IT'S MAYBE MORE STEPHANIE JONES STEBBINS COULD ANSWER IT
BUT COULD YOU JUST GO INTO A LITTLE MORE DETAIL ON YOUR FORECASTING FOR CRUISE? SO I'M LOOKING AT SPECIFICALLY IN THE APPENDIX PAGE 20
AND WE HAVE OUR 2020 APPROVED BUDGET FOR MARITIME
AND THEN THE REVISED BUDGET
ALL OF THOSE NUMBERS ARE THE SAME
THE APPROVED BUDGET VERSUS THE REVISED BUDGET ON THE REVENUE SIDE OF THINGS WITH THE EXCEPTION OF A SMALL HAIRCUT FOR RECREATIONAL BOATING WHICH WE'VE ALREADY TALKED ABOUT WHICH IS DOING BETTER THAN EXPECTED
BUT OBVIOUSLY CRUISE THE FORECAST IS STILL FOR 4.2
CAN YOU TALK ABOUT WHAT CRUISE ACTUALS ARE AND WHERE EXACTLY WE GET THE REVENUES FROM CRUISE FROM
DOES THAT MAKE SENSE? SURE
I'LL LET STEPHANIE TALK THROUGH THAT ONE
ACTUALLY
YEAH, THANK YOU
AND I'M JUST GOING TO PULL UP SLIDE 20 TO MAKE SURE I CAN SPEAK SPECIFICALLY TO WHAT YOU'RE SAYING
SO OKAY, WAIT, SOMEBODY WILL DO IT FOR ME
WHEN WE LOOK AT THE OUR YEAR-END
WE AS YOU KNOW, WE ARE NOT ANTICIPATING ANY CRUISE BUSINESS THE REST OF THIS YEAR
THERE IS A LEASE PAYMENT FOR FOR PIER 66 THAT IS STILL INCLUDED IN OUR YEAR-END FORECASTS
AND THAT IS THE FOUR MILLION DOLLAR NUMBER
OKAY
THAT'S WHAT THAT IS
IS THE 4 MILLION FOR 66 FOR NCL
YEP
OKAY, GREAT
THAT'S ALL I NEED TO KNOW
THANK YOU
OTHER COMMISSIONERS BEFORE WE MOVE ON? WE CAN MOVE ON TO A COMMISSIONER CALKINS IF HE HAS ANY COMMENTS? NONE RIGHT NOW
COMMISSIONER CHO
I'M GOOD
THANK YOU
COMMISSIONER FELLEMAN
HAVE WE GOTTEN ANY FURTHER REQUESTS FOR DEFERMENTS OR THINGS OF THAT SORT FROM OUR TENANTS IN THE MARITIME?
YEAH, THANKS COMMISSIONER
THE ANSWER IS AS THE CRISIS CONTINUES, YES
WE ARE RECEIVING REQUESTS BOTH ON THE WATER SIDE AS WELL AS ON THE LAND SIDE AND WE DEAL WITH THEM AS THEY COME YOU DID HEAR JO SAY EARLIER THAT ON THE RECREATIONAL SIDE WE'VE GOT ABOUT 30 SOME CUSTOMERS THAT WE HAVE DEFERRED AND ON THE FISHING SIDE ABOUT 13 CUSTOMERS THAT WE HAVE DEFERRED MOORAGE FOR AND THEN I BELIEVE YOU'RE PROBABLY UP TO DATE ON THE LAND SIDE
DAVE COULD SPEAK MORE TO THAT AS WELL BUT THERE ARE SEVERAL CUSTOMERS THAT ARE ASKING FOR DEFERRAL AND OTHER SUPPORT
SO IS IT ONLY NCL THAT HAS LEASE OBLIGATIONS OR WASN'T THERE ANY SORT OF MINIMUM MAGS FOR THE OTHER LINES AT 91? ONLY NCL HAS A LEASE PAYMENT
THE REST WE DO HAVE LONG-TERM AGREEMENTS
AND I'M HAPPY TO SHARE MORE INFORMATION WITH THE COMMISSION OFFLINE
VERY GOOD
THANK YOU
AND THEN COMMISSION PRESIDENT
I'M NOT SURE IF MR MCFADDEN HAD A COMMENT TO ADD
HEY DAVE
NO, I CAN JUST ADD TO STEFANIE'S COMMENT IN THE CONTEXT OF OUR PRESENTATION COMING UP
THANK YOU
ALRIGHT
THANKS DAVE
LET'S CONTINUE
I HAVE NO QUESTIONS AT THIS TIME
NEXT SLIDE PLEASE
OKAY, EDD IS FORECAST TO SLIGHTLY EXCEED NET OPERATING INCOME VERSUS THE REVISED BUDGET FOR THE YEAR
CONFERENCE AND EVENT CENTER VOLUMES ARE EXPECTED LOWER THAN WHAT WE PREDICTED IN MARCH, BUT ABOUT 80 TO 85 PERCENT OF THAT IS MADE UP BY REDUCED VARIABLE COSTS
THERE WERE 47 RELIEF REQUESTS EXECUTED WITH WATERFRONT TENANTS AS ELIZABETH STATED LAST WEEK, WE DID BUILD SOME CUSHION INTO OUR CASH FLOW FORECAST TO ACCOUNT FOR THE RISK THAT SOME OF THE THESE TENANTS MAY NOT BE ABLE TO REBOUND
I DON'T KNOW IF DAVE WANTED TO ELABORATE FURTHER ON THIS? I'LL DO IT ON THE NEXT SLIDE
NEXT SLIDE, PLEASE
YEAR-TO-DATE NOI IS FAVORABLE TO REVISED BUDGET AND DOWN FROM 2019
REVENUE IS A MILLION BELOW REVISED BUDGET AND 5 MILLION BELOW 2019
CONFERENCE AND EVENT CENTER VOLUMES ARE THE KEY DRIVER WITH BELL STREET PARKING DOWN AS WELL
EXPENSES ARE THREE MILLION FAVORABLE DUE TO TIMING OF MAINTENANCE EXPENSES ALONG WITH PROGRAM SPIN AND CONFERENCE VOLUMES, WHICH ALSO DRIVE THE REDUCTION FROM 2019/ THE ECONOMIC DEVELOPMENT DIVISION SPENT ABOUT 72% OF THE REVISED BUDGET IN THE FIRST HALF OF THE YEAR AND FORECASTING 79% BY THE END
THAT IS MOSTLY ATTRIBUTED TO THE CONFERENCE AND EVENT CENTER MODERNIZATION PROJECT
NEXT SLIDE PLEASE
SO HERE I'LL COME IN AND GIVE YOU SOME HIGHLIGHTS OF OUR MILESTONES
I MADE PROGRESS WITH REAL ESTATE
I KNOW THERE WAS A QUESTION ABOUT OUR PROGRESS AT THE FISHING PIER, PIER 86
AND WE DID GET AN AGREEMENT GOING WITH DEPARTMENT OF FISH AND WILDLIFE AND KIRA IS WRITING A MEMO TO GIVE YOU THE COMPLETE DETAILS AROUND OUR WORK WITH DFW AND EXPEDIA ON THAT FISHING PIER
AS YOU CAN SEE WE'VE COMPLETED DESIGN ON FT PROJECTS, MADE PROGRESS ON OTHER REAL ESTATE DEVELOPMENT
BUT REALLY I THINK THE SECOND AND THIRD BILLETS REALLY GIVE YOU A SIGNAL OF THE TIMES
OUR STAFF AT PIER 69 HAS BEEN INUNDATED JUST WITH KEEPING THE BUILDING SAFE AND HEALTHY AND IMPLEMENTING CORONAVIRUS RESPONSE MEASURES
EVERYTHING FROM GOOD HYGIENE TO PHYSICAL DISTANCING THROUGHOUT THE BUILDING
AND THEN AS KELLY MENTIONED EARLIER WE HAVE EXECUTED 47 DIFFERENT LEASE DEFERRAL AGREEMENTS
THERE LEAST FIVE TO MY KNOWLEDGE STILL COMING WITH MORE VERBAL QUERIES ABOUT RELIEF AS WE PASS THE FOUR MONTH MARK OF OUR CURRENT DEFERRAL PROGRAM
AND SO WE'RE KEEPING A CLOSE EYE ON THAT
ON A GOOD POSITIVE NOTE, WE DID FINISH OUR FIRST MARITIME INNOVATION ACCELERATOR
I THINK YOU'VE HEARD THE GOOD NEWS AND RESULTS OUT OF THAT PROGRAM IN JULY
RON HAS DONE A GOOD JOB CONTINUING TO PROMOTE TOURISM ALBEIT CAREFULLY AND REALLY HE DID PUT TOGETHER OUR TOURISM RELIEF PARTNERSHIP WITH THE WASHINGTON TOURISM ALLIANCE THAT YOU APPROVED AT OUR LAST MEETING
AND THEN ON A FINAL NOTE, DIVERSITY AND CONTRACTING, WE'RE DOING WELL THERE
I DID ASK STAFF TO LOOK A LITTLE BIT MORE AT OUR LOWER CONSTRUCTION UTILIZATION AND I GOT A PRELIMINARY ANSWER
THE DUST IS STILL SETTLING AND WE EXPECT TO REVISE THAT NUMBER AND I'LL SHARE THAT WHEN I GET IT
THE THING THAT I JUST ADD FOR DIVERSITY AND CONTRACTING AND FOR JO MEYER, WHO IS ALSO ON MY STAFF IS JUST A KUDO
THEY DID A TREMENDOUS AMOUNT OF OUTREACH IN Q2 TO TAKE INFORMATION AND ASSISTANCE TO OUR TENANTS AROUND CARES LOAN AND OTHER RESOURCES TO HELP IMPACTED SMALL BUSINESSES ACROSS THE BOARD
SO THERE YOU HAVE IT
A GOOD QUARTER AND HAPPY TO ANSWER ANY QUESTIONS
COMMISSION PRESIDENT STEINBREUCK, WOULD YOU LIKE ME TO CALL FOR QUESTIONS? YES
DEEP IN THOUGHT ABOUT EVERYTHING
THAT'S OKAY
WE'LL HAVE TIME FOR YOUR QUESTIONS, TOO
[LAUGHTER] STARTING WITH COMMISSIONER BOWMAN
NOTHING RIGHT AT THE MOMENT
THANK YOU
THANK YOU
COMMISSIONER CALKINS
NOT FOR ME EITHER
THANK YOU
COMMISSIONER CHO
I'M GOOD
THANK YOU
COMMISSIONER FELLEMAN
COMMISSIONER FELLEMAN, WE CAN'T HEAR YOU
I'LL GET THIS ONE OF THESE DAYS
I THINK WE'LL JUST LET HIM OFF THE HOOK EASY THIS TIME
NO QUESTIONS
THANK YOU
AND THEN THE COMMISSION PRESIDENT STEINBREUCK, ITS BACK TO YOU
I APPRECIATE THE PRESENTATION HERE AND ALL THE GREAT WORKING THAT'S GOING FORWARD
I HAD A QUESTION? OKAY, BACK TO COMMISSIONER FELLEMAN
I UNDERSTAND NOW THAT WE HAVE CLEARED THE SPACE FOR FOR THE GATEWAY BUILDING AND THAT WE EMPTIED THE TO NET SHEDS ADJACENT TO IT AND MY UNDERSTANDING WAS THAT WE WERE GOING TO USE THE WOOD FROM THOSE NICHES PERHAPS AND SOME OF THE OLD GROWTH TOWARDS THE INNOVATION CENTER
AND SO I'M JUST WONDERING ABOUT ANY OF THE ASSOCIATED EXPENSES WITH THAT? I MEAN, I KNOW THERE'S A WHOLE QUESTION ABOUT WHICH PROJECT WE WOULD MOVE FORWARD ON
AND I'D LIKE TO HAVE A CONVERSATION AT SOME POINT ABOUT JUST THE POTENTIAL IF WE DON'T GO FORWARD WITH THE GATEWAY BUILDING WHETHER WE CAN JUST SORT OF LEVEL THE SITE, MAYBE USE IT FOR PARKING IN THE INTERIM AND ALSO MAKING IT MAYBE MORE DESIRABLE AS A SOMETHING TO MARKET WHEN YOU CAN SEE THE FULL, YOU KNOW, FOOTPRINT THAT A POTENTIAL BUILDING COULD GO IN THERE
AND I DON'T KNOW WHETHER WE'RE LOOKING AT POTENTIAL EXPENSES ASSOCIATED WITH SITE PREP OR, LIKE I SAID, RECYCLING THOSE MATCHES OR ANYTHING LIKE THAT
FRED THOSE HAVE BEEN THINGS WE HAVE CONSIDERED
AND I WILL TAKE AN IOU TO LOOK INTO THOSE OPTIONS FURTHER AND GET BACK TO YOU WITH MORE INFORMATION
THANK YOU
IT'S DEFINITELY SOMETHING SHY OF ACTUALLY REDEVELOPING
WE CAN MAYBE JUST MAKE USE OF THAT SPACE IN SOME WAY
THANK YOU
MR PRESIDENT, I HAVE A QUESTION FROM COMMISSIONER BOWMAN AND THEN I HAVE EXECUTIVE DIRECTOR METRUCK WAITING TOO
LET'S GO TO BOWMAN THEN
THANK YOU
THANK YOU
REALLY QUICKLY DAVE, COULD YOU PROVIDE FOR THE MARITIME PORTFOLIO MANAGEMENT, AND I THINK ITS SPECIFICALLY SAYS ON PAGE 19 OF THE APPENDIX WHERE IT SAYS IT'S 243,000 LOWER DUE TO VACANCY AT THE MICK
WHAT ARE YOU ANTICIPATING MOVING FORWARD FOR THE REMAINDER OF THE YEAR? ARE WE ABLE TO FILL THAT VACANCY OR ARE WE PERHAPS GOING TO SEE MORE VACANCIES? YOU'RE TALKING ABOUT THE MARITIME INDUSTRIAL CENTER? I'D LIKE TO GET BACK ON YOU
I KNOW WE WERE WORKING ON A PRETTY CONSIDERABLE DEAL TO REDEVELOP A SIGNIFICANT PORTION OF THAT BUILDING AND I WANT TO GET AN UPDATE FROM MELINDA ON THAT, OKAY? BECAUSE THAT COULD REALLY TURN AROUND AND HELP RESTORE THE OCCUPANCY AND ACTUALLY PUMP THE OCCUPANCY UP SUBSTANTIALLY IN THAT FACILITY
SO IF YOU COULD GIVE ME AN IOU I'D APPRECIATE IT AND ALL GET AN UPDATE FOR YOU
YEAH, ABSOLUTELY
THANK YOU
I HAD A QUESTION FOLLOWING UP ON COMMISSIONER BOWMAN'S
I KNOW WE WERE HAVING A CONVERSATION DAVID, THERE WAS SOME MARITIME TECH FOLKS THAT WERE POTENTIALLY IN NEED OF A HOME IN THE NEAR FUTURE AND WE WERE TALKING ABOUT POTENTIALLY ABOVE THE HIGHLINER OR SOME OTHER STUFF LIKE THAT
I'M WONDERING WHETHER WE'RE GOING TO PURSUE THAT CLUSTER OF TENANTS WHICH WOULD BE POTENTIALLY FUTURE TENANTS OF THE INNOVATION CENTER BUT IN THE INTERIM WHILE [INAUDIBLE] FOLKS ARE IN FLUX, ARE WE ARE WE LOOKING INTO THOSE AS POTENTIAL NEAR TERM TENANTS? THE ANSWER IS YES, FRED
I HAVE NOT SAT DOWN AND TALKED TO MEMBERS OF THE COLLABORATORY YET, BUT YOU'VE PLANTED THAT SEED WITH ME LAST WEEK AND I DO THINK THAT'S AN OPPORTUNITY TO HAVE A CONVERSATION WITH THEM ABOUT WHETHER THEY COULD SET UP SHOP AT FISHERMAN'S TERMINAL
GREAT
I HAD A QUESTION FOR STEPHANIE AS WELL
IT'S REALLY LOOKING AT PROJECTING FORECAST FORWARD
BUT YOU KNOW, WE RECENTLY LEARNED ABOUT THE POTENTIAL NEED FOR ADDITIONAL SCREENING TECHNOLOGIES AT THE AT THE CRUISE TERMINALS
AND AND I THINK YOU PUT IN LIKE A PLACEHOLDER OF LIKE THREE MILLION DOLLARS AND IT STRIKES ME FROM THE PROJECT WE'RE DOING AT THE AIRPORT, IT'S SOMETHING ESTIMATED TO COST LIKE 12 MILLION DOLLARS
AND THAT'S JUST FOR TEMPERATURE CHECKS
SO I'M JUST WONDERING YOU KNOW, IN TERMS OF FORECASTING, THIS GOING TO BE A VERY MODEST ESTIMATION IF NOT, A TREMENDOUS UNDERESTIMATE
I WAS WONDERING WHETHER YOU COULD INFORM THAT
YES, THANKS COMMISSIONER
WE ACTUALLY HAVE JUST UNDER SEVEN MILLION IN THE CAPITAL BUDGET
AND AS YOU DESCRIBED, IT IS SOMEWHAT A PLACEHOLDER
WE ARE WATCHING NOT ONLY WHAT THE CRUISE LINES ARE DOING
BUT WHAT THE CDC WILL COME OUT WITH, WORKING WITH PORTS AND ALASKA AS WELL WE HAVE SEVEN MILLION AND THAT IS ABOUT AS OTHER PORTS ON WHAT THOSE PROTOCOLS WILL BE
ABOUT HALF WHAT THE NUMBER YOU QUOTED FOR THE AIRPORT IS
REMEMBER THAT EVEN AT OUR HIGHEST END, WE HAVE ABOUT A MILLION PASSENGERS, YOU KNOW, IF YOU COUNT BOTH WAYS AS YOU KNOW, WE DO VERSUS YOU KNOW, CONSIDERABLY MORE THAN THAT AT THE AIRPORT
SO AND THAT WILL BE GETTING FURTHER REFINED AS WE MOVE FORWARD
AND THAT'S JUST TEMPERATURE CHECKS
SO LOOKING FORWARD TO ALL THE OTHER THINGS WE MIGHT HAVE TO GO THROUGH
AND THERE WAS ALSO, I'M SORRY, I'VE RINGS THIS BEFORE
WE HAD SEVERAL HVAC PROJECTS WHETHER IT BE AT 66 AT THE WORLD TRADE CENTER, AND I THOUGHT THERE WAS ACTUALLY A 91
AND IS THIS COVID WORLD GOING TO REQUIRE US TO UPGRADE THOSE SYSTEMS? WE DO NOT HAVE AN HVAC SYSTEM FOR THE SMITH COVE CRUISE TERMINAL IN THE CAPITAL PLAN FOR THE SMITH'S COVE CRUISE TERMINAL
SO THOSE ARE ALL THINGS THAT WE'RE LOOKING AT GOING FORWARD AND WE WILL GET BACK TO YOU ON THE PIER 66 HVAC SYSTEM
AND ARE WE DOING WORLD TRADE CENTER AS WELL? THAT IS CORRECT
UNDERSTANDING IS THAT WE HAD ALREADY ORDERED THESE THINGS RIGHT? THESE ARE EITHER IN PLACE OR UNDERWAY
I JUST DON'T KNOW WHETHER THIS IS GOING TO REQUIRE SOME CONTRACT MODIFICATION OR WHATEVER? I WILL TAKE AN IOU, COMMISSIONER
OKAY
I'LL CONFIRM THIS FRED
I BELIEVE I GOT AN ANSWER FROM MELINDA ALREADY AND I'LL JUST DOUBLE CONFIRM THIS THAT THOSE ARE COMPATIBLE WITH THE NEW HEALTH AND SAFETY REQUIREMENTS RELATED TO COVID BUT I JUST HAD THAT CONVERSATION WITH HER AND I'LL DOUBLE CONFIRM IT AND LET YOU KNOW
AND THE COMMISSION PRESIDENT--- COMMISSIONER FELLEMAN, I'D LIKE TO GET A COUPLE OF QUESTIONS IN BEFORE WE MOVE ALONG
COMMISSIONED PRESIDENT STEINBREUCK, WE DO HAVE EXECUTIVE DIRECTOR METRUCK WAITING TO SPEAK
HE'S BEEN WAITING AS WELL
SO LET'S HEAR FROM DIRECTOR METRUCK
THANKS
WE'LL GET BACK TO THE COMMISSIONERS ON THIS
THANK YOU
MR PRESIDENT
I WAS JUST GOING TO TRANSITION TO THE NEXT SPEAKER, BUT I THINK YOU HAD QUESTIONS HERE
I DIDN'T WANT TO CUT OFF THE DISCUSSION
TRYING TO BE PATIENT HERE AND LET EVERYONE SPEAK
I DID HAVE SOME QUICK QUESTIONS IN THE AREA OF THE FINALIZED AGREEMENT ON PIER 86 WITH DEPARTMENT OF FISH AND WILDLIFE
THAT HAS BEEN A LONG-STANDING ISSUE
IT'S A PUBLIC DOC THAT'S BEEN UNDER THE OWNERSHIP, AS MY UNDERSTANDING, OF THE STATE DEPARTMENT OF FISH AND WILDLIFE WITH US THROUGH A MANAGEMENT AGREEMENT IN THE PAST
I'D LIKE TO KNOW WHAT THE COST SHARING IS THERE AND WHEN WE CAN EXPECT THAT FACILITY TO BE RETURNED TO PUBLIC USE AND WHAT THE DETAILS
AND I'M NOT ASKING FOR IT ALL HERE, IT CAN BE AN IOU ON THAT, BUT I THINK WE SHOULD CONTINUE TO KEEP THAT AS AN IMPORTANT PUBLIC INTEREST FACILITY THERE THAT WE'RE MAKING PROGRESS ON TO RESTORE ITS USE
THE SECOND AREA I'M INTERESTED IN IS MAYBE A LITTLE BUNDLING OF THE DIVERSITY IN CONTRACTING
APPRECIATE THE BUNDLED NUMBERS OF ACHIEVEMENT THERE WITH 14.4 PERCENT WOMEN MINORITY BUSINESS OWNED UTILIZATION
IN NON-CONSTRUCTION I THINK WE NEED TO CONSIDER UNBUNDLING SOME OF THAT WITH REGARD TO EQUITY BECAUSE I THINK THAT THERE HAS BEEN A PATTERN OF PARTICIPATION
I'M SORRY, THERE'S A LOT OF BACKGROUND NOISE
I CAN HARDLY HEAR MYSELF TALK
I THINK THAT THAT MIGHT BE FROM COMMISSIONER FELLEMAN IF HE IS STILL ON HIS MOBILE DEVICE? CAN YOU MUTE HIM? I CANNOT
I THOUGHT YOU HAD THE POWER OF GOD [LAUGHTER]
I DO WHEN YOU'RE ON DESKTOP NOT CURRENTLY THOUGH
SO I WANT A DEEPER DIVE ON THE WMBE PARTICIPATION AND I THINK THAT THERE IS NOT JUST AN ISSUE OF DIVERSITY, IT'S AN ISSUE OF EQUITY AND THE SHARING OF THOSE CONTRACTS TO VARIOUS SUBGROUPS UNDER THAT CATEGORY
CONVERSELY YOU REPORT THAT 4.7 PERCENT UTILIZATION IN CONSTRUCTION
I THINK WE'RE DOING MUCH BETTER AT THE AIRPORT IN THAT DEPARTMENT WITH SOME OF THE SAME ISSUES ABOUT EQUITY AND DIVERSITY AND SO UN BUNDLING THAT AND LOOKING A LITTLE DEEPER AND MAYBE HONING OUR STRATEGIES TO DIRECT MORE WORK IN CONTRACTING MORE EQUITABLY AMONGST THE VARIOUS GROUPS THAT ARE REPRESENTED
HAPPY TO HEAR ANY COMMENTS, BUT ALSO HAPPY TO HAVE AN IOU ON THOSE TWO TOPICS
I GOT YOUR QUESTION PETER AND WE WILL LOOK INTO THAT AND WE'LL GET BACK TO YOU WITH THE INFORMATION YOU ARE LOOKING FOR
THANK YOU
ALL RIGHT, WE'LL FOLLOW UP
OKAY WITH THAT, I THINK WE CAN MOVE ON
PETER YOU BROUGHT UP TWO THINGS THAT STRUCK ME ABOUT THE AREA ASSOCIATED WITH THE INNER BAY
I MEAN I JUST WANT [INAUDIBLE] PIER
YEAH, THERE'S TWO QUESTIONS I WAS HAVING ABOUT WAS DO WE HAVE ANY UPDATES ON WHAT'S GOING ON AT THE ARMORY? BECAUSE THAT HAS DIRECT IMPLICATIONS ABOUT WHAT'S GOING ON AT SOBOTA
AND I KNOW WE'RE GOING TO BE LOOKING AT THE QUESTIONS ABOUT THE ENCAMPMENT THERE, THE TINY HOUSES, I'M SORRY, WHATEVER WE CALL IT
AND THEN AND THEN ASSOCIATED WITH THAT IS THE LONG DISCUSSED ISSUE ABOUT THE BIKE PATH THAT EXPEDIA WAS GOING TO BE INVOLVED WITH PAYING FOR GETTING RID OF THAT BLOODY BRIDGE IN THE CAGE FOR THE BIKE PATHS
AND THOSE THINGS ARE JUST BEEN OUTSTANDING A LONG TIME AND I WOULD LIKE TO KNOW WHETHER THIS CERTAINLY HAS IMPLICATIONS ON A REAL ESTATE
ONCE AGAIN
I WILL TAKE THE I OWE YOU FOR THE ARMORY UPDATE WORK WITH THEM ON THAT
HE'S PROBABLY GOT THEM LATEST UPDATE AND THEN STEPHANIE JONES STEBBINS AND I WERE CONSULTING ON THE BIKE PATH WE'LL GET SOME NEW DETAILS TO YOU COMMISSIONER FELLEMAN ON THAT
OKAY, GOOD QUESTIONS
ALL RIGHT
WELL, LET'S MOVE ALONG
GREAT
THANKS
WE'LL WILL GET BACK TO YOU ON THOSE QUESTIONS WITH MORE DETAILS OF THOSE
LASTLY
WE HAVE MICHAEL KONG WHO'S GOING TO TALK ABOUT CENTRAL SERVICES PERFORMANCE OF THAT AND THEN WE'LL SUMMARIZE AFTER THAT AND SUMMARIZE TAKEAWAYS AS WELL
SO MICHAEL, THANK YOU
CAN YOU HEAR ME? YES, OKAY, GREAT
NEXT SLIDE, PLEASE
SO I'M GOING TO GIVE YOU A QUICK OVERVIEW FINANCIAL SUMMARY OF THE CENTER SERVICES FOR THE YEAR
WE ARE FORECASTING 1.7 MILLION ON THE REVENUES OPERATING REVENUE SIDE, WHICH IS 1.6 MILLION FAVORABLE WITH THE BUDGET MAINLY BECAUSE WE HAVE A UNBUDGETED [INAUDIBLE] WE USUALLY DON'T BUDGET THOSE, YOU KNOW, UNBUDGETED ITEMS SO THIS IS KIND OF A NICE SURPRISE KIND OF REVENUE
ON THE EXPENSIVE SIDE
WE EXPECT 3.2 MILLION FAVORABLE COMPARED WITH THE REVISED BUDGET MAINLY DUE TO OUR HIRING FREEZE AND THE REVISED BUDGET OF THE DISCRETIONARY SPENDING CUT AND SOME SPENDING DELAY
YOU CAN SEE THE CAPITAL DEVELOPMENT AREAS AS THE ONLY AREA THAT ARE WE EXPECTING AN UNFAVORABLE VARIANCE MAINLY DUE TO LESS CHARGES TO CAPITAL PROJECTS THIS YEAR BUT OVERALL PRETTY GOOD NUMBER
ON THE CAPITAL SIDE, YOU KNOW, WE ARE EXPECTING A FAVOR BUDGET VARIANCE OF 2.9 MILLION FOR THE YEAR
IF YOU DON'T HAVE A QUESTION WE CAN GO TO THE NEXT SLIDE, PLEASE
I HAVE A QUESTION ON THE POLICE BUDGET
THIS RELATES TO THE CITY'S INTENTION OF CUTTING THE HARBOR POLICE STAFFING WITHIN THE CITY OF SEATTLE POLICE DEPARTMENT
IT'S THAT LIKELY TO IMPACT NEGATIVELY OUR OUR LEVEL OF STAFFING UNDER THE POLICE BUDGET? IN OTHER WORDS
ARE WE GOING TO HAVE TO ADD MORE STAFFING TO UP FOR THE LOSS IF THE CITY GOES AHEAD IN 2021? [INAUDIBLE] DEPARTMENT BUDGET AT THIS POINT
WE DO ANTICIPATE PROBABLY BE SOME DELAY HIRING FOR SURE AND FROM SAVING IN GENERAL FOR SOME OF THE THE VACANT POSITIONS
SO DETAILS TO COME IN THE NEXT WEEK
RIGHT NOW STILL WORKING ON THE BUDGET BUT WE ARE SEEING SOME SAVING THIS YEAR AS WELL AS REDUCTION COMPARED TO THE REVISED BUDGET NEXT YEAR
MAINLY DUE TO THE VACANCIES
YEAH, AND I THINK IF I CAN ADD TO THAT MICHAEL, COMMISSIONER ON THAT SPECIFIC WE'D HAVE TO ANALYZE
THE STAFF IS ANALYZING THAT NOW WITHIN POLICE DEPARTMENT WITH CHIEF VIA
THIS IS A WHAT POTENTIAL IMPACTS
WE'LL HAVE TO GET BACK TO YOU ON THAT, OF THE POTENTIAL IMPACT OF THAT
I JUST LIKE TO FLAG THAT AS A CONCERN THAT MAYBE SHIFTING MORE BURDEN ONTO OUR PORT POLICE, OUR MARINE UNIT
I WOULD BE QUITE CONCERNED ABOUT THAT
SO, OKAY
ALL RIGHT
THANKS
THAT'S ALL
THANK YOU
THANK YOU FOR THE QUESTION
NEXT SLIDE, PLEASE
SO YOU'RE VERY FAMILIAR WITH THE AUTO BUSINESS EVENT HERE SO I PROBABLY WON'T TO GO INTO DETAIL, BUT JUST WOULD LIKE TO KNOW IF I FEEL HERE FOR YOUR FOR YOU AND THE PUBLIC WE DEVELOP AND BE POINTED THE SELF-CHECK HEALTH CARE SURVEY AS YOU ALL KNOW AND TO POLLY POCKET ANSWER YOUR QUESTION OUR COMMISSIONER SAMPLE
WE DID PROVIDE SOME MUTUAL AID TO THE CITY OF SEATTLE, YOU KNOW DURING THE LATE MAY EARLY JUNE WE IN RESPONSE TO THE MAJOR CIVIL UNREST IN DOWNTOWN AREA
ALSO IN OTHER POLICE ALSO PARTICIPATE IN A VIRTUAL SPECIAL OLYMPICS
ONCE IN JUNE THIS YEAR IS ON GOING ONLINE
AND THEN WE ALSO DEVELOP A THREE-YEAR WORKFORCE DEVELOPMENT STRATEGY PLANNED AND YOU'VE BEEN BUILT ON BY THE OFFICE OF EQUITY DIVERSITY AND INCLUSION WITH THE INPUT FROM THE COMMUNITY FEEDBACK AND COMMUNITY LEADER PARTICIPATED AND ALSO, YOU KNOW, WE HAVE IMPLEMENTED A DEAL
SECOND USE SYSTEM INCLUDING THE NEW PURCHASES TERM PLANNING BUT BUDGET PLANNING SYSTEM THE NEW APPLICATION MANAGEMENT SYSTEM
ALSO SOME UPGRADE FOR THE DEEP PEOPLESOFT FINANCE ON MAIN ENTERPRISE SYSTEM PEOPLESOFT TO UPGRADE SO THERE'S SOME IMPROVEMENT THERE AND THEN LET'S ALSO EXECUTIVE DIRECTOR MENTIONED IN HIS EARLIER REMARK, YOU KNOW, THE YOUTH OPPORTUNITY PROGRAM FIRST GRADUATE
WE ALREADY SEE THERE BUT ALSO ANTICIPATE A TOTAL OF 220, YOU KNOW TO YOUR JOB
YOU KNOW WHAT THIS SUMMER'S OR PRETTY COOL TO SEE YOU NEXT TIME, PLEASE
SO HERE'S A FINANCIAL HIGHLIGHTS FOR THE FIRST HALF OF THE YEAR AGAIN
I WON'T GO INTO THE DETAIL OF THE NUMBERS HERE THAT MADE ME WANT TO POUR KNOW IT FEEL YOU KNOW NUMBER ON THE SECOND LAST COLUMN THE FAVORABLE
THE ACTUAL COMPETITIVE REVISED BUDGET VARIANCE THERE THE BOTTOM FOUR MILLION FAVORABLE TO THE REVISED BUDGET, WHICH IS ALMOST 6 PERCENT FAVORABLE AND AGAIN, YOU KNOW MAINLY DUE TO THE THIS, YOU KNOW, THE HIRING FREEZE AND ALL THE MEASURE BUDGET REDUCTION MEASURES THAT WE YOU KNOW IMPLEMENT BUT ON IN ON TOP OF THAT WE ALSO, YOU KNOW TRY TO COME UP WITH DO OUR BEST AND COME UP WITH ADDITIONAL SAVING AS MUCH AS POSSIBLE
PAUSE AS MUCH AS POSSIBLE SO YOU CAN SEE NO DUSTY
WELL PRETTY GOOD NUMBER HERE EVEN COMPARED TO THE REVISED BUDGET YET TODAY AND ALSO COMPARED TO THE LAST YEAR SAME PERIOD LAST YEAR THIS LAST COLUMN DATA ABOUT 3.6 MILLION, YOU KNOW CHANGES FROM THERE, BUT MAINLY DUE TO YOU KNOW, THE PAY INCREASE THE THAT LAST THAT WE HAVE THIS YEAR EARLIER THIS YEAR AS WELL AS THE YOU KNOW, SOME OF THE POSITION THAT WE'VE IT ONLY POSSIBLE IN 2019 BUDGET, YOU KNOW NOW, YOU KNOW IN 2000 WILL BE A FULL YEAR IMPACT
SO THOSE ARE LIKE A MAJOR REASON FOR THE INCREASE IN THE NEXT SLIDE, PLEASE
SO WITH THAT WE'LL GO FOR THE POT WHY I WANT TO GIVE YOU A KIND OF OVERVIEW FOR THE OVERALL POINT WHY WE SO WITH ALL THE OTHER INTEGRATION AND INTO SERVICES TOTAL SINNERS DO COMMISSIONERS HAVE ANY QUESTIONS ON THE PREVIOUS AREAS OF THE PRESENTATION BEFORE WE GO TO PORT WIDE? COMMISSIONER BOWMAN
DO YOU HAVE ANY COMMENTS? I DO JUST A QUICK ONE
THANK YOU
AND MICHAEL YOU MIGHT NOT BE ABLE TO ANSWER THIS
SO AGAIN JUST A RAIN CHECK OR AN IOU FROM THE STAFF MAYBE MORE FOR STEVE
I WAS WONDERING ABOUT THE FAIRLY SIGNIFICANT INCREASE IN LEGAL COSTS
THAT'S ON PAGE 29 I THINK OF THE APPENDIX WHERE OUR ORIGINAL BUDGET FOR LEGAL WAS ABOUT 4 MILLION
OUR REVISED BUDGET WAS 3.9 MILLION BUT OUR FORECAST FOR LEGAL EXPENSES IN 2020 IS NOW 5.1 MILLION
SO I'D LIKE A LITTLE MORE INFORMATION ABOUT THAT
AND THEN ALSO STEVE IS YOU'RE PUTTING TOGETHER THE 2021 BUDGET IF YOU, I MEAN I'M WELL AWARE OF HOW MANY TIMES WE GET SUED, AND ALSO HOW MANY TIMES WE RELY ON OUTSIDE COUNSEL, PERHAPS WE MIGHT LOOK AT BRINGING ON MORE LEGAL HELP INTERNALLY RATHER THAN ALWAYS RELYING ON OUTSIDE COUNSEL
SO IF YOU COULD LOOK AT THAT
AND THEN THE SECOND QUESTION AGAIN, I COULD JUST TAKE AN IOU
ON SLIDE 78 FOR CENTRAL SERVICES
THE TRAVEL AND OTHER EMPLOYEE EXPENSES BUDGET ITEM AND TRYING TO UNDERSTAND WHAT'S IN THAT ITEM
SO OBVIOUSLY, I DON'T THINK ANYBODY'S BEEN TRAVELING CERTAINLY SINCE MARCH AND KIND OF WANTING TO HAVE MORE VISIBILITY TO WHAT ALL IS INCLUDED
YOU DON'T NEED TO DO IT NOW, BUT IF YOU COULD JUST PROVIDE THAT IN MORE DETAIL IN AN E-MAIL, I'D APPRECIATE IT
YES COMMISSIONER ON BOTH OF THOSE
AND JUST TO YOU KNOW TO GO BACK TO THE FIRST ONE
YES, WITH A LOT OF POLICIES AND DOING THINGS THERE'S A LOT MORE LEGAL EXPENSES, BUT WE'LL GIVE YOU A BREAKDOWN TO SO WE CAN WE CAN LOOK AT THOSE AND UNDERSTAND THOSE AND I THINK YOUR POINT ON-- THAT'S THE CLASSIC QUESTION THAT WE'RE ALWAYS LOOKING AT, RIGHT
OUTSIDE COUNSEL VERSUS INSIDE CAPACITY
SO THANK YOU ON THOSE
WE'LL GET BACK TO YOU WITH MORE INFORMATION
OKAY, SO NEXT SLIDE, PLEASE
OH, WAIT, WAIT
WAIT
I WANTED TO MAKE SURE COMMISSIONERS HAD QUESTIONS
AND I DO ALSO SO
COMMISSIONER CALKINS
ANYTHING FOR QUESTIONS OR COMMENTS FOR THE SEGMENT? NOT FOR ME
THANK YOU
COMMISSIONER CHO
NOT FOR ME EITHER
THANK YOU COMMISSIONER FELLEMAN
I'M GOOD FOR NOW
THANK YOU
COMMISSIONER STEINBREUCK BACK TO YOU
DO WE COLLECT FROM AIRPORT AVIATION REVENUES THE COST OF LEGAL SUPPORT THAT WE PROVIDE THERE FIRST OF ALL? WE CHARGE THEM IF SOMETHING VERY SPECIFIC LIKE FOR EXAMPLE FOR ADR IF IT'S A LEGAL OBLIGATION OR SOME LEGAL MATTER AFTER THE LEGAL DEPARTMENT DIRECT CHARGE TO THE BUSINESS FOR SPECIFIC CASE, IF IT'S FESTIVE SPECIFICALLY TO A DEPARTMENT OR YOUR BUSINESS SO SO BUT IT'S ALL END UP IN THE LEGAL DEPARTMENT PHOTOS OKAY, SO AND I PARTICULARLY BECAUSE OF ALL THE CONTRACTING AND CONSTRUCTION WORK GOING ON OUT THERE
I THINK THAT THERE'S A SIGNIFICANT LEGAL COSTS ASSOCIATED THAT I THINK SHOULD BE BILLED TO THE AIRPORT AND WE DON'T NEED TO TRY TO ADDRESS THIS NOW, BUT I WANTED TO PUT THAT OUT THERE
YEAH, THAT'S EXACTLY WHAT HAPPENED
YOU KNOW, ALL THOSE CASES
YOU DON'T WANT TO IN SOME CASES SOME, YOU KNOW LEGAL ADVISERS OR SERVICES IN SUPPORT OF THE OPPORTUNITY
CHO CHO BUSINESS OR END UP IN THE YOU KNOW, THE LEGAL DEPARTMENTS
OKAY, SO IT BUT YOU KNOW, WE DO TO RECHARGE THOSE TO THE BUSINESS
OKAY
THIS APPLIES LEFT UNDER DIFFERENT TOPIC HERE UNDER THE POLICE BUDGET
ONCE AGAIN, DO WE COST OUT THE COST OF MUTUAL AID AND I'M I DON'T EXPECT THAT
WE ARE BILLING FOR THE COST OF MUTUAL AID, BUT WE DO WE COST IT OUT
SO IN OTHER WORDS, DO WE KNOW WHAT? WHAT FOR EXAMPLE THE PROTEST SUPPORT BY PORT OF POLICE THROUGH MUTUAL AID COST SUPPORT? YES
WE DON'T FEEL LOST AN APPEAL TO YOU KNOW AUDIO, YOU KNOW THOSE SCIPIOS OF INTENSITY THAT WE HAVE THE MUTUAL AGREEMENT WITH BUT WE DO HAVE A PROGRAM CALLED WE TRY TO CHECK THAT USING A PROGRAM CALLED IN GENERAL
I WOULD BE INTERESTED IN A FOLLOW-UP ON THE COST OF PROVIDING NEUTRAL AID AND ALSO OVER TIME COST AT THE IN THE POLICE DEPARTMENT
I'M ASSUMING THAT THE SUPPORTING THE MUTUAL AID IN THE CASE IN THIS CASE PARTICULARLY RUNS UP OVER TIME AS WELL, BUT I DON'T KNOW SO I'M NOTING THAT THE POLICE BUDGET WENT UP THIS YEAR
SO, OKAY, WE'LL PULL OUT THE INFORMATION
I'M NOT INTERESTED IN DEFUNDING THE PORT OF POLICE
BELIEVE ME
I JUST WANT TO UNDERSTAND HOW HOW THESE COSTS ARE BEING ACCOUNTED FOR AND WHAT THEY ARE
ALL RIGHT
THANK YOU MICHAEL
OKAY, THANK YOU
AND I WOULD LIKE TO GO GET BACK TO ONE OF THE SECOND QUESTION COMMISSIONER BOWMAN MENTIONED US A LITTLE BIT EARLIER FOR IN TERMS OF WHAT IN A HIGH LEVEL IN TERMS OF WHAT'S IN THE TRAVEL AND OTHER EMPLOYEE EXPENSES THOSE MAINLY OBVIOUSLY SOME STILL HAVE SOME REGULAR CULTURE FOR AND OTHERS AND REMEMBER THAT WE ALSO OUGHT TO SPEND SOME MONEY IN THE FIRST AT LEAST IN THE FIRST HALF HOUR GIVE THEM FIRST, YOU KNOW, HALF THE MONTH IN
JANUARY AND FEBRUARY BEFORE THE COFFEE OBVIOUSLY, SO THAT SUMS ACTUAL SPENDING ALREADY HAPPENED THE OTHER PART
WE LIKE TO POINT OUT THAT NOT ONLY THE CHO FOR THE REGULAR CAR TRAVEL FOR CONFERENCE AND OTHERS BUT THERE'S SOME REQUIRE TRAINING, YOU KNOW, SOME OF THEM MAY BE ONLINE BUT YOU KNOW STUFF PROBABLY SOME OF THEM ALREADY PURCHASED EARLIER IN THE YEAR AND YOU HAVE TO MAINTAIN FOR EXAMPLE, THE CPA OR THE PROFESSIONAL ENGINEERING LICENSE THINGS LIKE THAT
THE OTHER PART IS LEAVING THAT KEPT AND THE CATEGORY THERE'S ALSO SOME MEMBERSHIP, YOU KNOW AND SUBSCRIPTION THINGS LIKE THAT
SO, YOU KNOW THAT THAT WE ARE PAYING SOME MEMBERSHIP, YOU KNOW VARIOUS OTHER MEMBERSHIP AS WELL
SO THAT'S COMPANY MAINLY IN THIS CATEGORY, BUT ALTHOUGH UP TO THE SHOP WHEN EMPLOYEE EXPENSES
THANK YOU MICHAEL
I APPRECIATE THAT
NO PROBLEM
COMMISSIONER STEINBREUCK, I THINK STEPHANIE JONES STEBBINS HAD A LITTLE MORE INFORMATION SINCE YOU WERE TALKING ABOUT POLICING ONE BEFORE
INPUT ON THAT AS WE'RE GETTING MORE INFORMATION
WE HAVE SOME ADDITIONAL INFORMATION
YEAH, COMMISSIONER STEINBREUCK
FOLLOW UP ON THAT, RIGHT NOW OF COURSE EVERYTHING IS FLUID WITH the FUNDING OF THE CITY POLICE BUDGET, BUT WITH RESPECT TO THE HARBOR PATROL, THE OFFICIAL PROPOSAL IS TO REDUCE THE NUMBER OF PERSONNEL FROM 30 TO 28
IF THAT OCCURS, THAT WOULD NOT HAVE A SIGNIFICANT IMPACT ON US
IF THEY WERE TO MORE SIGNIFICANTLY DEFUND OR MOVE TO ANOTHER PART OF THE CITY THAT ORGANIZATION THAT WASN'T LAW ENFORCEMENT, THAT WOULD HAVE A REAL IMPACT ON WHAT'S ON THE SERVICES THAT WE PROVIDE IN PARTNERSHIP
SO WE ARE FOLLOWING IT CLOSELY, BUT THE CURRENT PROPOSAL WOULD NOT HAVE A SIGNIFICANT IMPACT
BECAUSE I THINK WE NEED TO BE PARTICULARLY ATTENTIVE TO ANY COST SHIFTS THAT MIGHT BE THE RESULT OF THE CITY'S BUDGET CUTTING THAT'S OCCURRING DRAMATICALLY NOW
ABSOLUTELY
OKAY, THANK YOU
OKAY, LET'S MOVE ON TO THE OVERALL PORTWIDE SUMMARY
SO HERE'S A QUICK OVERVIEW
I HIGHLIGHT HERE TODAY IN THE FIRST HALF OPERATING REVENUE TO PAIN 26 POINTS 6 MILLION FAVORABLE SORT OF EXCUSE ME UNFAVORABLE TO THE REVISED BUDGET MAINLY DUE TO THE AERONAUTICAL REVENUE TOBOGGAN CUBE A REGULATED AREA AND ALSO 91 ALMOST 92 MILLION LOWER THAN THE SAME PERIOD LAST YEAR
EXPENSIVE SINO 17.2 MILLION BELOW THE REVISED BUDGET AND ALSO ALMOST 19 MILLION LOWER THAN THE SAME PERIOD LAST YEAR AND I BEFORE DEPRECIATION I POINT FOUR MILLION UNFAVORABLE TO THE REVISED BUDGET AND ALSO 73 MILLION LOWER THAN THE SAME PERIOD LAST YEAR ON THE CAPITAL SPENDING
WE SPENT ONE JUST SIMPLY 257 BILLION OR ALMOST 50% OF THE DEVICE
BUDGET AND FOR THE FULL YEAR, WE ARE EXPECTING BETTER NEW OPENING REVENUE 129 MILLION UNFAVORABLE TO THE REVISED BUDGET AND 253 BILLION LOWER THAN LAST YEAR'S
WELL OFTEN EXPRESSES 13 MILLION FAVORABLE TO THE REVISED BUDGET AND ALSO IT CAN BE USED THEN LOWER THAN 2019 DUE TO THE PATCH ABDUCTION THAT WE HAVE EARLIER THIS YEAR AND BEFORE THE APPRECIATION 116 MILLION AND FAITH FOOTBALL AFTER THE REVISED BUDGET AND ALSO 235 MILLION LOWER THAN 2019 CAPITAL SPENDING EXPECT A 544 MILLION A PORTMAN LEAD OVER 8 MILLION ABOUT THE REVISED BUDGET
SO THERE'S SOME NEW PHOTO ABOUT FOR A WHILE NEXT SLIDE, PLEASE
AND HE IS JUST SO YOU KIND OF A LITTLE HISTORY FOR THE OVERALL PLOT Y NOI THAT INCLUDE OPERATING REVENUE ARE NOT AIRPORT NAUTICAL WEAPON NEW AIRPORT LAW OR NAUTICAL WEB VIDEO AND OTHER LONG AIRPORT REVENUES AND WE HAVE THAT NEXT TIME
WE HAVE A LITTLE BIT MORE DETAIL FOR THE LONG AIRPORT REVENUES AND EXPENSES
BUT HERE I GUESS THE KEY MESSAGE CAN SEE IN THE PAST FOUR YEARS FROM 2006 ALL THE WAY TO LAST YEAR WE HAVE THING OPINION NICE INCREASE BUT IN VALLEJO EXTEND AND ALSO ON THE NET OPERATING INCOME AS WELL, THEN YOU CAN SEE THE SIGNIFICANT REDUCTION, YOU KNOW IN THE REVISED BUDGET AND FORECAST THIS YEAR
SO LET'S JUST OTHER PRESSURE PUT ON A SLIDE THAT HAS A LITTLE BIT MORE DETAIL FOR THE LONG AIRPORT AND WHY? NEXT SLIDE PLEASE
SO HERE'S SIMILAR KIND OF STORY, YOU KNOW OVERALL THE YOU CAN SEE THE DARK BLUE ONE FOR THE 2020 IS THE OTHER OPERATING REVENUES
SO IT'S YOU KNOW, IT'S THE LIGHTER ONE IS A LIGHTER BLUE IS THE NOT BEST DISTRIBUTABLE REVENUE SO THAT THEY CAN BE DASHING OBVIOUSLY IS FROM YOU KNOW, THE COURSE AND ALL THE OTHERS, YOU KNOW, GREAT
EVERYTHING ELSE BOTH THE FUNCTION OF TIME AND EDD REVENUES ALSO LEFT IN YOU EXPECT EXPENSES
I KNOW YOU'RE ALSO SEEING SOME REDUCTION BOOK COMES OUT TO THEIR BRIEF IS BUDGET, YOU KNOW PAGE
SO NEXT SLIDE, PLEASE
SO HERE'S OUR KIND OF OVERVIEW OF THE CAPITAL SPENDING FOR Y AS YOU CAN SEE, YOU KNOW BE EXPECTING A LITTLE BIT OVER THE POOL AT THE REVISED BUDGET
SO EXPECT A 544 MILLION ALMOST 40 YEARS LITTLE BIT LOWER THAN LAST YEAR, BUT STILL FIT THIS KIND OF, YOU KNOW SPENDING THIS USE I'M NEXT SLIDE, PLEASE
SO HERE'S A KIND OF A QUICK OVERVIEW OF ALL THE COMMUNITY PROGRAMS SO THAT'S A LOT OF NUMBER HERE
YOU KNOW, I WOULD LIKE TO DRAW YOUR ATTENTION TO A FEW NUMBERS
SO THE FIRST ONE IS THE IN THE 2020 ADDITION SLASH REDUCTION COLUMN IN ORDER TO THE BOTTOM LINE 1.8 MILLION
I WOULD LIKE TO POINT OUT THAT AS A NET OF THE ABOUT 1.2 MILLION
ATTRACTION WHICH INCLUDE MOST OF THEM ARE THEIR VACANCY AND SOME DISCRETIONARY SPENDING NOT MUCH ON THE CORE PROGRAM, YOU KNOW, SOME OF THE PROGRAM TO COMPLETE, YOU KNOW, THAT REALLY BENEFIT THE COMMUNITY THOSE ABOUT 800 280,000 THAT WE PREVIOUSLY PREVIOUSLY SHARE WITH YOU WINDOWS AND THE COMMISSION BETWEEN OR OTHER PROBLEMS SO AGAIN, YOU KNOW, IT'S A PAIN POINT TOOL FROM MILLION OF THOSE ARE REALLY THOSE HAVE DISCRETIONARY SPENDING THAT HAS SOME VACANCY SOME CHO FOR AND ALL THOSE AND THEN THEY YOU APPROVED IT THREE MILLION 1.5 OR THE YOUTH OPPORTUNITY PROGRAM AND THEN ANOTHER ONE POINT FIVE FOR THE TOURISM PROGRAM
SO THAT'S THE THREE MILLION TOTAL
SO YOU CONNECT THE ONE POINT, YOU KNOW, 1.2 WITH THE THREE MILLION INCREASE THAT'S THE 1.8 HERE
SO IT'S LIKE INCREASE ACTUALLY FOR THIS YEAR
AND THEN THIS SECOND NUMBER DEVELOPMENT OF THE LAST COLUMN THE YEAR TODAY, YOU KNOW
AND SPENDING AS OF THE FIRST HALF OF THE YEAR, YOU KNOW, WE SPENT ABOUT 4.5 MILLION ALREADY AND ESPECIALLY IF SOME OF THEIR LIKE THEIR BIG ONE THE SOUTH KING COUNTY PROGRAM WE EXPECTING TO SPEND, YOU KNOW, MUCH MORE THAN X IN THE SECOND HALF OF THE YEAR
SO SO THIS IS KIND OF A PRETTY HIGH LEVEL AND YOU KNOW WITH ALL THE DETAILED THE COMMUNITY PROGRAM THAT YOU MAY BE INTERESTED THAT MAYBE INCHES TO YOU
SO WITH THAT I WOULD LIKE TO ANSWER ANY FURTHER QUESTION THAT YOU MAY HAVE
QUESTIONS, LET'S GO DOWN THE LIST
CERTAINLY
BELIEVE COMMISSIONER BOWMAN IS LEAVING THIS CALL AT THREE O'CLOCK
I'M NOT SURE IF SHE'S STILL ON THE LINE? I'M STILL ON AND I DON'T HAVE ANY FURTHER QUESTIONS
THANK YOU
THANK YOU COMMISSIONER BOWMAN
AND COMMISSIONER CALKINS
ANY COMMENTS FOR THE SEGMENT? NONE FOR ME, THANKS
THANK YOU
COMMISSIONER CHO
NOT FOR ME EITHER
THANK YOU
COMMISSIONER FELLEMAN
YEAH, CAN YOU HEAR ME? YES
I WAS JUST THINKING ABOUT DUE TO DAY'S UNCERTAINTIES ASSOCIATED WITH OUR ABILITY TO DO OUR FULL TOURISM PROMOTION THAT THE IDEA THAT THIS FUND COULD BE, YOU KNOW, EXPENDED OVER EVEN MORE THAN ONE YEAR
AND SO I'M JUST SAYING THE WAY IN WHICH PHASED IN IS A YOU KNOW, WE HAVE TO YOU KNOW DEAL WITH SITUATIONS AS THEY UNFOLD AND SO I'M JUST WONDERING IN TERMS OF FLEXIBILITY, WE WILL KNOW AS TIME GOES ON SORT OF HOW THIS GETS REVISED
SO I JUST WANTED TO POINT THAT OUT AS A YEAH AS A POTENTIALLY, YOU KNOW, MOVING TARGET
YEAH
COULD WE GO BACK TO THAT LAST SLIDE IN THE PRESENTATION? YEAH, GIVE ME ONE MOMENT TO GET IT BACK UP
AND THE COMMISSION PRESIDENT STEINBREUCK, WE HAVE MR THOMAS AND AS WELL EXECUTIVE DIRECTOR METRUCK THAT ARE LINED UP TO SPEAK
I'D LIKE TO GET THAT LAST SLIDE BACK UP AGAIN
IF WE COULD
IT'S GOING TO TAKE JUST A MOMENT I EXITED OUT OF IT
OKAY
I HAVE AN INTEREST IN THE SAME TOPIC THAT PERHAPS FROM A DIFFERENT APPROACH HERE WITH REGARD TO COMMISSIONER FELLEMAN'S QUESTIONS ABOUT THE TOURISM FUND THERE AND THAT'S WHY I WANTED TO GET THAT SLIDE BACK UP WITH THE ACTUAL NUMBERS BUDGETED FOR 2020 AND AUTHORIZED
I THINK IT WAS 2.8 MILLION IN TOTAL? OKAY
SO WHAT TROUBLES ME ABOUT THE AMOUNT OF MONEY GOING INTO TOURISM IN THIS YEAR'S BUDGET IS ONE, OUR ABILITY TO TO SPEND THAT IN WAYS THAT ARE GOING TO ACHIEVE OUTCOMES THIS YEAR GIVEN THE CONSTRAINTS ON TRAVEL THAT IS JUST FUNDAMENTAL RIGHT NOW AND LIKELY TO CONTINUE
AND TWO, POSSIBLY THE MONEY WOULD BE BETTER SPENT
HERE WE GO
NO, THAT WASN'T IT
YEAH, IT WAS THE VERY LAST SLIDE THAT WAS SHOWN THAT SHOWED TWENTY OKAY, IS IT THAT LISTED INCREASED SPENDING IN TOURISM
THIS IS IT HERE
IT HAS A SO WE GOT 2.8 MILLION GOING INTO 2020 TOURISM
I CAN'T HELP BUT THINK THAT THAT MONEY IS NOT GOING TO BE REALLY GET A WHOLE LOT OF TRACTION THIS YEAR
IT MAY HELP ORGANIZATIONS AND THEIR OPERATIONAL SUPPORT NEEDS, BUT I DON'T SEE HOW IT'S GOING TO PRODUCE OUTCOMES IN TERMS OF STIMULATING THAT SECTOR OF THE ECONOMY IN 2020
AND I REALIZE WE'VE ALREADY APPROVED THOSE FUNDS AND IT'S A LITTLE LATE TO BE RAISING SUCH QUESTIONS, BUT NEVERTHELESS I JUST CAN'T HELP BUT THINK THAT MAYBE THE MONEY WOULD BE BETTER SPENT NEXT YEAR AND SHOULD HAVE BEEN THROUGH THE 2021 BUDGET PROCESS
IF I COULD, PLEASE
I'M SORRY
YEAH
NO, PLEASE IF YOU WANT TO RESPOND, I WELCOME THE PORT OF SEATTLE, WE ARE IN THE TOURISM BUSINESS
SO THE PORT INVESTING IN TOURISM IS COMPLETELY CONSISTENT WITH WHAT WE ARE, WHO WE ARE, AND IT'S AN IMPORTANT PART OF OUR ECONOMIC DEVELOPMENT MISSION
AS YOU POINT OUT AND AS I WAS TRYING TO MAKE THE CASE HOW THIS ROLLS OUT IS SOMEWHAT OF SOME UNCERTAINTY
HAVING SAID THAT THOUGH, I BELIEVE THERE ARE SOME VERY STRATEGIC INVESTMENTS WE CAN BE MAKING UP FRONT THAT CAN HELP LATER ON
AND SO ONE OF THE TERMS OF RIGHT NOW IS LIKE BOOK NOW TRAVEL LATER, RIGHT? SO GETTING PEOPLE TO SORT OF GET IN THE MODE AND MAKING PLANS DOWN THE ROAD AND FOR US RIGHT NOW, I THINK SOME OF THE THINGS THAT I WANT TO SEE US PROMOTING ARE ACTIVITIES THAT CAN OCCUR DURING ALL SEASONS, IT'S NOT JUST
WASHINGTON STATE IS NOT JUST HERE TO PLAY IN AUGUST
RIGHT
AND WE NEED TO SPREAD OUT, YOU KNOW FLATTEN THE CURVES THAT WE SAY ON THOSE NATURAL AREAS SO THAT WE DON'T TRAMPLE THEM LIKE GOING ON RIGHT NOW
AND THAT'S ONE OF THE OTHER THINGS I WOULD LIKE TO SEE US PUT SOME OF THIS MONEY RIGHT NOW INTO SOME RESPONSIBLE OUTDOOR ACTIVITY EDUCATIONAL EFFORTS BECAUSE THE FEW REALLY ACCESSIBLE NATURAL AREAS ARE REALLY GETTING TRAMPLED
SO THERE ARE SOME SPENDING BUT I THINK CAN OCCUR RIGHT AWAY, I THINK THERE COULD BE SOME
CERTAINLY THE MAJORITY OF WHICH WOULD BE CARRIED OUT INTO NEXT YEAR
BUT LIKE I SAID DEPENDING ON HOW THINGS GO WE COULD REALLY STRETCH THIS BUDGET OUT AND I JUST WANTED TO LAY IT OUT THERE AS IT AS JUST SOMETHING AS A BUDGETING ITEM THAT COULD HAVE A FLOAT TO IT, BUT I DON'T WANT TO I DON'T WANT TO SUGGEST THAT IT'S NOT A GOOD THING TO SPEND ON BUT IT'S THE SEQUENCING OF EVENTS AND THAT UNCERTAINTY
SO I THINK WE'RE TALKING THE SAME
APPRECIATE THAT, AND I THINK YOU HIT THE HIT THE NAIL ON THE HEAD WITH REFERENCE TO STRATEGIC INVESTMENTS
I'M NOT SURE THAT WE'VE BEEN EFFECTIVE IN LEVERAGING OUR INVESTMENTS AND OUR RECENT ADDITIONAL INVESTMENT IN THE TOURISM INDUSTRY
WHAT I SAW WAS SOME MARKETING CAMPAIGNS AND THINGS THAT DIDN'T REALLY TIE DIRECTLY TO SOME OF THE AREAS THAT YOU MENTIONED
I DON'T QUESTION OUR MISSION WITH REGARD TO TOURISM AND AS PART OF OUR WORK ECONOMIC DEVELOPMENT PORTFOLIO
I HAVE NEVER QUESTIONED THAT I JUST QUESTIONED HOW WE SPEND THE MONEY AND WHAT WE GET BACK OUT OF IT AND ALSO LEVERAGING THE MONEY THAT WE SPEND THROUGH OUR CONTRIBUTIONS SUCH AS THIS IN THIS CATEGORY
SO COMMISSIONERS
ONE OF THE THINGS THAT I WAS LEARNING ABOUT AND WHAT I'VE LEARNED IS THAT A LOT OF INTERNATIONAL TRAVELERS A HIGH PERCENTAGE OF THEM ARE COMING TO ENJOY OUR NATURAL WEALTH IN WASHINGTON STATE
AND SO AND THESE ARE OFTEN IN THE RURAL, YOU KNOW COMMUNITIES THAT ARE MORE ECONOMICALLY DEPENDENT ON SUCH THINGS AND THAN VISIT SEATTLE COMMUNITIES ARE
SO THE THE ABILITY FOR US TO BE ABLE TO IN THIS TIME
PEOPLE AREN'T FLYING DID BE PROMOTING THESE NATURAL AREAS AND THE RESPONSIBLE USE OF THEM AND THE FACT THAT THEY ARE AVAILABLE YEAR-ROUND
THIS WILL GO TOWARDS OUR, YOU KNOW, MORE TRADITIONAL AIRPORT SEAPORT PROMOTIONAL BUSINESS
BUT IN THE INTERIM, THIS IS WE'RE PARTNERING WITH THE WASHINGTON TOURISM ALLIANCE WHO HAS A MANDATE TO DO STATEWIDE AND SPECIFICALLY RURAL ECONOMIC DEVELOPMENT ACTIVITIES, THIS IS A STRATEGIC LEVERAGE OPPORTUNITY
BUT WHAT I'M IN THE ONGOING CONVERSATION WITH THEM IS RIGHT NOW REALLY THE THE SEQUENCING OF THAT STRATEGIC APPROACH
AND SO THIS IS A WORK IN PROGRESS
THAT'S ALL I WAS TRYING TO SAY AND I THINK THE MORE INPUT WE GET THE BETTER
OKAY DIRECTOR METRUCK, YOU TRYING TO GET A WORD IN HERE? YEAH
I'M JUST TRYING TO COMMENT JUST IN TERMS OF DAVID MCFADDEN
BUT OF COURSE COMMISSIONER STEINBREUCK
WE WON'T BE EXPENDING THESE FUNDS BASED ON THIS TOURISM BRIEF THAT WE THE LAST BELIEVE IT IS UP TO LESS COMMISSION MEETING BUT BUT JUST SAYING IS THEIR TIMING MATTERS ON THIS THE MONEY DOESN'T DISAPPEAR
IF IT'S IF IT'S EITHER WILL APPLY IT AS AS APPROPRIATE ON THIS AND WE'RE NOT GOING TO APPLY IT IF IT'S NOT APPROPRIATE TO APPLY THIS MONEY EITHER THROUGH THROUGH OUR THE TOURISM ALLIANCE, BUT ARE ALL CONTINUE TO HAVE CLOSE COORDINATION WITH THEM AND THAT WE UNDERSTAND THE TIMING IS YOU KNOW IS ESSENTIAL
TOURISM IS A BIG CONTRIBUTOR TO THE ECONOMY HERE IN WASHINGTON STATE BUT TIMING IS AN IMPORTANT ISSUE IS WE WE ALL STRUGGLE, YOU KNOW WITH THE WITH THE PANDEMIC SO WE HAVE ANY LEVERS TO PULL DIRECTOR METRUCK ON THE 1.5 TO THE TOURISM ALLIANCE? OR IS THIS JUST HANDED OVER TO THEM? DAVE? NO
WE'RE GOING TO EXECUTE A SERVICE AGREEMENT THAT'S PRETTY TIGHT AND DIRECTIVE IN TERMS OF HOW OUR FUNDING HAS TO BE USED
FIRST OF ALL, WE HAVE SOME LEGAL PARAMETERS THAT WE HAVE TO HONOR AND STAY WITHIN SOME GUARDRAILS IF YOU WILL
BUT PART OF OUR FELLEMAN I MEAN REALLY IS BUILT ON THE FACT THAT THEY ARE GOING TO LEVERAGE OUR MONEY AND WE HAVE TO HAVE THAT EXPECTATION THAT IF WE PUT OUR FUNDING IN FOR CERTAIN ACTIVITIES THAT THEY WILL DO OTHERS
AND SO VERY MUCH APPRECIATE THE LINE OF QUESTIONING THE CONVERSATION AND I'M GOING TO ALSO TAKE A HOMEWORK ASSIGNMENT TO HAVE RON JUST DRILL DOWN SOME MORE DISTINCT TIMELINES AND PROVIDE A HIGHER LEVEL OF DETAIL AROUND THIS IMPORTANT PARTNERSHIP
APPRECIATE THAT VERY MUCH
THANK YOU
LET'S CONTINUE
SO I THINK MICHAEL THAT CONCLUDES YOUR PRESENTATION, CORRECT? THAT'S CORRECT
THANK YOU
SO I THINK WITH THAT COMMISSIONERS, I THINK THAT THERE WERE A FEW TAKEAWAYS
AT THE HIGH LEVEL IS THAT OUR CONSERVATIVE MEASURES EARLY ON SERVED US WELL IN THE LEVEL OF UNCERTAINTY TO TAKE THOSE ACTIONS
WE'LL CONTINUE TO LEARN LOOK AT THOSE, LOOK AT OUR ASSUMPTIONS THAT WE HAD GOING INTO THIS
WE'LL CONTINUE TO LOOK AT OUR REVENUE STREAMS GOING THROUGH AS WE GO NOW INTO THE THIRD AND , THEN INTO THE FOURTH QUARTERS TO SEE HOW WE'RE PERFORMING AGAINST THE WHICH HELPS US FORMULATE THE BUDGET
I THINK THE BIG TAKEAWAY HERE IS THAT EVEN THOUGH WE'VE DONE A GOOD JOB YOU NEED TO CONTINUE TO LOOK AT CONSERVING OUR EXPENSES
LOOKING AT OUR EXPENSES AND THEN LOOKING AT THE WAYS POTENTIAL WAYS FOR REVENUES AS WELL TO DO THAT
AND THE IMPORTANCE, YOU CAN SEE ON THE AVIATION SIDE, THE IMPORTANCE OF THAT FEDERAL ASSISTANCE TO THOSE CRUCIAL AVIATION PROGRAMS TO DO THAT
WITH A POTENTIAL HERE FOR WITH A POTENTIAL FOR SOME POTENTIAL FURTHER ACTION HERE BY CONGRESS THAT WOULD HELP US IMMENSELY
SO I'D LIKE TO TURN TO DAN THOMAS
I DON'T KNOW IF DAN'S ABLE TO ABLE TO COMMENT HERE, BUT THEN WE CAN TIE UP THIS SESSION
OKAY
ALL RIGHT
THANK YOU
YEAH, THANK YOU STEVE
SO AGAIN SOME AT THIS POINT IN TIME WE ARE TRACKING WELL AGAINST OUR REVISED BUDGET AND I THINK WE'RE PARTICULARLY PLEASED THAT OUR YEAR EXPENSE FORECAST SHOWS THAT WE EXPECT TO COME IN EVEN LOWER THAN THE CUTS WE TOOK EARLIER IN THE YEAR AS PART OF THE REVISED BUDGET
SO WE'RE PERFORMING REALLY WELL AGAINST THAT
BUT AS YOU KNOW, WE'RE STILL NOT OUT OF THE WOODS
IT'S A FLUID SITUATION
SO WE'LL BE WE WILL BE MONITORING THIS CLOSELY AS WE PROCEED OVER THE NEXT FEW MONTHS
NORMALLY
WE DON'T PROVIDE A PUBLIC PRESENTATION ON THE THIRD QUARTER UPDATE, BUT I THINK I'LL RECOMMEND THAT WE DO PROVIDE A PRESENTATION FOR THE THIRD QUARTER UPDATE JUST BECAUSE THINGS ARE SO FLUID SO YOU HAVE A SENSE OF HOW WE'RE PERFORMING AT THAT TIME AS WELL AND AS WE'RE LEADING INTO THE 2021 BUDGET
SO WE APPRECIATE YOUR TIME
OKAY, LET'S TAKE ANOTHER ROUND OF COMMISSION QUESTIONS AND COMMENTS IF THERE ARE ANY
I THINK BOWMAN MAY HAVE LEFT
COMMISSION PRESIDENT, I BELIEVE COMMISSIONER CALKINS ALSO LEFT THE MEETING
SO HERE JUST DOWN TO A QUORUM
COMMISSIONER CHO? NO QUESTIONS
THANKS
AND THEN COMMISSIONER FELLEMAN
I WILL SPARE YOU ANY FURTHER DISCUSSION
[LAUGHTER] IT'S GETTING LATE IN THE DAY
I APPRECIATE DAN THOMAS'S CLOSING REMARKS
I THINK AS I SAID EARLIER, I FEEL LIKE THAT THIS IS CONFIDENCE BUILDING IN TERMS THAT WE'RE DOING THE RIGHT THINGS IN ALL OF OUR LINES OF BUSINESS AND DIVISIONS AND BEING SMART ABOUT IT
WHAT I SEE GOING ON HERE IS WHAT I WOULD CALL IT THAT ADAPTIVE BUDGET MANAGEMENT
AS WE AS WE MOVE THROUGH THE YEAR WITH A LOT OF UNCERTAINTIES, WE'RE TRACKING THINGS CLOSELY AND WE'RE MAKING NECESSARY ADJUSTMENTS THROUGHOUT THE YEAR WITH OUR FINANCIAL MANAGEMENT AND MAKING NECESSARY COURSE CORRECTIONS AND LOOKING FOR OPPORTUNITIES TO REDUCE EXPENSES
AND I THINK THE NUMBERS DEMONSTRATE ALL OF THAT
AND SO I THINK IT IS AN UNPRECEDENTED YEAR THAT CALLS FOR THIS LEVEL OF ADAPTIVE BUDGET MANAGEMENT, IF YOU WILL, THAT I THINK IS BEING PRACTICED HERE IN A WAY THAT WE HAVEN'T DONE BEFORE
THAT'S ABOUT ALL I HAVE TO SAY EXCEPT TO EXTEND THANKS TO EXECUTIVE DIRECTOR METRUCK AND OUR FINANCIAL TEAM AND MANAGEMENT AT THE PORT
COMMISSIONER IF I COULD JUST ADD ONE MORE THING ON THAT
WE'VE HAD TO MAKE SOME HARD CHOICES BUT WE WILL HAVE TO MAKE SOME HARD CHOICES INTO THE FUTURE
I WANT TO PUT THAT OUT THERE
WE ARE JUST, AS YOU SAID, WE'RE ADAPTING TO THE CIRCUMSTANCES THAT WE'RE DOING AND WE'LL HAVE TO CONTINUE WITH THAT WITH SOME OF THESE BUT WE HAVE POTENTIAL AS WE LOOK FORWARD TO 2021 OF THIS STRETCHING OUT, YOU KNOW, THERE'S SOME POTENTIAL FOR HARDER CHOICES AHEAD OF US
SO YEAH, AND WE'RE NOT USING A BLUNT INSTRUMENT HERE
NO, SO THANKS FOR ALL YOUR INPUT
YES COMMISSIONER FELLEMAN? WE WILL NOT HAVE ANOTHER COMMISSION MEETING FOR THE MONTH OF AUGUST AND SO FOR ALL THE STAFF THAT MAKE THESE THINGS ONCE A WONDERFULLY CONGRATULATIONS
YOU CAN BE SPARED THIS EXERCISE AND I HOPE EVERYBODY ENJOYS THE LAST HOPEFULLY DAYS OF AUGUST AND HOPEFULLY THE SUN WILL CONTINUE TO SHINE IN TO SEPTEMBER
THANK YOU COMMISSIONER FELLEMAN
AND I IT MY INTENTION IN PLANNING OUR MEETING SCHEDULE TO PROVIDE A LITTLE BIT OF RELIEF AT THE END THIS THESE LATTER TWO WEEKS OF AUGUST TO STAFF AND COMMISSIONERS
IT'S BEEN A CHALLENGING DIFFICULT YEAR TO SAY THE LEAST AND IT'S BEEN EXTRAORDINARY TIME AND EFFORT THAT EVERYBODY HAS PUT INTO THE SO I DO HOPE THAT WITH THIS SHORT BREAK NOT THAT THINGS ARE GOING TO COME TO A HALT BUT AT LEAST YOU WILL TAKE TIME FOR YOURSELVES, YOUR FAMILIES, AND YOUR PERSONAL HEALTH AND WELL-BEING
COMMISSION PRESIDENT STEINBREUCK BEFORE WE CONCLUDE TODAY
I BELIEVE EXECUTIVE DIRECTOR METRUCK WOULD LIKE THE FLOOR
YOU MAY HAVE THAT
THANKS AND THEN WE'LL WRAP THINGS UP
THANKS
I DID WANT, I THINK JEFFREY BROWN'S ON THE LINE
I THINK JEFFREY WANTED TO CORRECT THE RECORD ON SOMETHING THAT WAS SAID REGARDING SUPERSONIC TRANSPORT
AND SO I THINK IT WOULD BE RELEVANT TO CORRECT IT HERE
EFFREY ARE YOU AVAILABLE TO DO THAT? YES
I'M HERE
CAN YOU HEAR ME? YES
YEAH
THANK YOU STEVE
THANKS FOR GIVING THE OPPORTUNITY TO RESPOND TO A COMMENT THAT WAS MADE IN THE PUBLIC SESSION
NORMALLY WE DON'T RESPOND TO COMMENTS IN A PUBLIC SESSIONS BECAUSE I DON'T THINK IT'S GOOD PRACTICE BUT GIVEN THE STATEMENT THAT WAS MADE I THINK IT'S VERY IMPORTANT THAT I MAKE A STATEMENT
THE STATEMENT I THINK WAS MADE BY THE FIRST PERSON REGARDING SUPERSONIC FLIGHTS
AND THAT INDICATED THAT LANCE LYTTLE, MANAGING DIRECTOR HAD AGREED TO THE OPERATION OF SUPERSONIC FLIGHT AT THE AIRPORT NEXT YEAR
SO I WANT TO PROVIDE SOME CONTEXT AND SOME FACTS
THE ONLY AIRCRAFT THAT'S ALLOWED AT THAT CERTIFIED FOR MANUFACTURE OF SUPERSONIC [INAUDIBLE] COMPANY IS NO LONGER MADE
THREE FIRMS ARE PROPOSING TO MANUFACTURE SUPERSONIC AIRCRAFT, BUT BEFORE THEY COULD DO THAT THEY HAVE TO MEET STANDARDS
EARLIER THIS YEAR THE FAA PUBLISHED WHAT'S CALLED A NOTICE OF RULEMAKING TO SET THESE STANDARDS
THANKS TO THE ALERTNESS OF OUR ENVIRONMENTAL STAFF, IT WAS BROUGHT TO OUR ATTENTION THAT THESE STANDARDS WOULD BE LOWER THAN OUR CURRENT NOISE STANDARDS
SO LANCE SENT A LETTER TO THE FAA IN JULY EXPRESSING OUR CONCERNS ABOUT THE STANDARDS IF APPROVED AND IMPACT WOULD HAVE ON A NOISE SENSITIVE COMMUNITY
SO CURRENTLY THE STANDARDS ARE JUST TRYING TO BE ESTABLISHED
AND BEFORE THEY COULD MANUFACTURE AIRCRAFT, STANDARDS HAVE TO BE MET
REGARDING THE AVAILABILITY OF COMMERCIAL SUPERSONIC AIRCRAFT, THERE'S NONE CURRENTLY AVAILABLE TODAY AND THERE WILL BE NONE AVAILABLE IN THE NEXT A LONG TIME BEFORE ANY COMMERCIAL AIR TRAVEL AVAILABLE
IN FACT YESTERDAY LAST NIGHT, WE HAD THE NOISE WORKING GROUP OF THE COMMUNITY CONVENE AND THE CONSULTANT THAT PRESENTED INDICATED THAT IT WOULD BE FIVE OR MORE YEARS BEFORE COMMERCIAL AIRCRAFT, SUPERSONIC AIRCRAFT AVAILABLE FOR A TEST FLIGHT OR FOR ANY REVENUE OPERATING FLIGHT
SO WITH THAT [INAUDIBLE] HOPEFULLY TO CORRECT ANY STATEMENT THAT WAS MADE REGARDING SUPERSONIC CLASS
JEFF BROWN, THANKS VERY MUCH FOR FOR THAT CLARIFICATION
IT'S IMPORTANT TO UNDERSTAND WHAT THE FACTS ARE AND WHAT THEY AREN'T
THE LETTER IS AVAILABLE
IT'S NOT A PRIVATE DOCUMENT
WE ARE CLOSING AND NOW ON ADJOURNMENT
WE DO HAVE ITEM 10 COMMITTEE REFERRAL BEFORE ADJOURNMENT
I WOULD ASK COMMISSIONERS IF THERE ARE ANY COMMENTS OR MOTIONS RELATING TO COMMITTEE REFERRALS
I DON'T KNOW OF ANY AND WE'RE DOWN TO CHO FELLEMAN AND MYSELF SO SPEAK UP OR HOLD YOUR PEACE HERE
OKAY, AND WE TYPICALLY DON'T HAVE COMMITTEE REFERRALS
MAYBE THAT'S SOMETHING WE SHOULD LOOK INTO AND EXPLORE THAT AS ITS UTILITY WITH REGARD TO PROCESS
ARE THERE ANY FINAL COMMENTS FROM COMMISSIONERS? OKAY
I THINK WE HAVE HAD A GOOD DAY OF MEETING TOPICS AND PRESENTATION
SO WITH THAT HEARING NO FURTHER COMMENTS, WE'RE NOW ADJOURNED AT 3:18
THANK YOU VERY MUCH
THANKS.

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